Burning STEEM! | December 2019
This is an update for burning STEEM for December 2019.
Burning STEEM has been on a lot of people mind lately. We can see that a lot of tribes are implementing this and for some it seems to be working. Burning tokens represents a sort of anti inflationary measure and can contribute a lot for the token price.
STEEM don’t have a lot of ways for burning tokens at the moment. The one thing that is strictly made for that is the promotions feature in the promotion tab. Other than this, there is no official usage to burn STEEM.
Lately we are seeing more initiative to burn STEEM. Setting null as beneficiaries is one of the things that can be seen. The burn post is constantly on trending.
Here I will be looking into transfers to the @null account and beneficiaries reward for the null account as well. For those who don’t know the @null account is a special account that burns STEEM and SBD. When STEEM or SBD is sent to this account it is removed from the supply and doesn’t stay in the null account wallet, unlike the SE tokens.
You can check this here https://steemitwallet.com/@null/transfers.
Transfers to @null account
Below is the all time chart for the STEEM transferred to the @null account.
A total of 59,512 STEEM transferred to @null account.
The chart above is from January 2018. Before this there is an insignificant amount of STEEM burnt and those months are not showed for better visibility.
What is clear from the chart is that there is a clear growth in the STEEM transferred to null in the last months. In September 2019 there was more than 6k STEEM, October 10k, November and December a bit more than 10k STEEM. The last few months basically represent the majority of the total STEEM transferred to null. Lest hope this trend keeps on growing.
Having in mind the STEEM inflation around 60k to 80k daily, and the total supply more than 300 M, this is a small amount of STEEM burned. But we have achieved 10K STEEM transferred to null in December 2019.
Here is a breakdown by date for STEEM transferred to null in December 2019.
A total of 12,159 STEEM transferred to @null account in December 2019.
Up from the 10k in November.
SBD transfers to the null account.
Since our blockchain has a dual currency system lets take a look how is SBD doing. Here is chart.
A total of 206,360 SBD transferred to @null account.
In total there is more SBD burnt than STEEM. If we take a look at the chart we can see that the SBD burn happened mostly when STEEM prices were high, and STEEM was more valuable then SBD, with price above 1$.
But these days sending SBD to null is almost non exictent with only 106 SBD sent to null in December 2019. STEEM is now taking the lead.
Setting @null as beneficiary
Lately there is initiative to set @null or the @steem.dao as a beneficiary. Let’s see how much STEEM was burned in this way.
A total of 25,592 STEEM transferred to @null as beneficiary account.
If we take a look at the chart this is happening onlt in the months after the hardfork. Almost all the STEEM sent to null as beneficiarie is in the last three months.
The ammount of STEEM burned by setting null as beneficiary in December 2019 is 7,417.
Here is a breakdown by date for STEEM beneficiaries to null in December 2019.
What is interesting is that burning steem from by setting null as beneficiary is happening daily and its more consistent than the transfers to null.
Total STEEM Burned in December 2019:
19,478 STEEM
Obviouly there is an upward trend for STEEM burnt in the last months and especialy after the Hardfork. This is a good thing. But this need to be more if we like to counter the inflation a bit. More users coming to the Steem blockchain will eat up that inflation, but for when there is not much of them, the inflation is starting to put pressuer on the price.
The burning thing is only one side in the overall Steem ecosystem, and there is much more reasons why are we here. But having much more STEEM burnt in the future cant hurt anyone 😊.
Top 10 Users that Burned STEEM in November 2019
Here is the table for top 10 users that burned STEEM in November 2019.
| Rank | User | STEEM |
|---|---|---|
| 1 | @burnpost | 16,799 |
| 2 | @steemitblog | 521 |
| 3 | @randowhale | 222 |
| 4 | @jarunik | 180 |
| 5 | @kryptogames | 150 |
| 6 | @thevil | 136 |
| 7 | @ackza | 95 |
| 8 | @kadjar | 81 |
| 9 | @jaguar.force | 74 |
| 10 | @smooth | 55 |
The @burnpost initiative is at the top but also some other Steemians are doing their share.
All the best
@dalz
Considering STEEM daily inflation we should be burning at least 100k STEEM per month.
Yes ... we need more!
It’s not bad all things considered that we are burning at least 1 days worth of reward pool! The inflation rate is far too high for the output from authors or the amount of resources it allocates for new accounts!
Until we have an influx of new users needing RCs to use the chain the burns will help make all the difference
I keep repeating that we need to fix the promotion .... burn to promote ... that is the basic sink .... and its broken ever since the begining and people are like ... meh ... not important .... nowdays it may not provide as much burns ... but in the hey days ... it would burnt a lot ... all that is missed ... at least to do something for the future...
Yeah and I think we’re in desperate need for it to be fixed and adding of more sinks! We can see how it helps the tribes so I can’t imagine steem wouldn’t have the same effect
I think that it would also help the peg in a way so we can encourage more steem or SBD to be removed so we reach and maintain its price
I don't understand the idea of burning something when people need them or are using them. Inflation is not always bad. it's depend where it goes. Steem is around 8.5% today and decreases every year by 0.5%. Those who power up their Steem benefit from this inflation. Long term holders benefit from inflation. It's not a problem because it was design and build with that in mind. Those who want to burn their steem can do that with @null account.
Inflation is good, scarcity is also good .... a balance is needed :)
Greetings Appreciated @dalz.
Why would someone burn their own steem?
Just to help the blockchain economy, even knowing that the effect caused is virtually imperceptible?
I think the burn rate could increase if users perceive some kind of benefit from this action.
The example you mentioned about the promotion seems very practical, but as we know this function is very little used.
Another thing, the biggest steem holders never send it to null. I think it would be they who should have the initiative and set the example. What do you think?
All best, Piotr
I agree with you about the biggest holder, but that is becouse of luck of funding.
There was no ICO, and later no revenue model at all. The ads came quite late. It they introduced them a bit earlier they may have enough revenue to cover cost and burn some steem on the way.
Look what Binance does!
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Hi, I got to your account through my friend @crypto.piotr and your post caught my attention.
Not long ago I made a post and realized that this option appeared within the post's reward form. I was really stumped.
Burn my steems??? Are you crazy!???
I'm not gonna do that!
So much so that it's hard for me to create a material to throw into the fire? What tha F?
I read some more and apparently it was necessary to do this for the sake of STEEM...
I really don't understand the need to burn the tokens. I guess to control inflation and improve STEEM value but it wasn't initially in the steem blockchain plan? When the creators started the blockchain they didn't foresee this problem? They are supposed to initially define the amount of STEEM that is going to be distributed or invested or call it what you want and obviously where it is going to be invested: development, payments, partners, marketing, administration, finance, etc.
This was within the plan that the creators of the steem blockchain had?
You seem like you are more clear than I am :)
Can you explain me? (Please...)
Thank you! Kind regards
Ps. I've been working together with my friend @crypto.piotr and few other guys on non-profit community project build on steem blockchain. It's called @project.hope
Please allow me to share with you link to our latest article, where we're explaining our economy and our goals. Your feedback and comment would be greatly appreciated.