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RE: HOT: Steemit just got Updated!!
The last part of the description says
"the funds are "burned". When funds are burned they become a dividend for share holders"
Noticed that burned is put in quotes and that it says the funds go to share holders. So they are not truly burned in the sense that they disappear forever. They go into the accounts of share holders. If this is so, it won't stabilize SBD.
I may be misinterpreting this, so correct me if I'm wrong please.
I have no idea, I have to look more into this, I am still researching this new feature.
But even if that is so, it would still decrease the money velocity of SBD, which would stabilize it's value somewhat.
Agreed, it would have an effect on the money velocity of SBD.
Yes, and not just that, it gives utility to SBD, so we could see an increase of traded volume of it. Which would stabilize the price. I am excited about this feature!
After researching a little bit more, yes they do get burned, they go to @null, which is a special account that nobody has control over. And then later they will be removed with a hardfork.
So the value remains in the community but the coin is burned, decreasing the supply and raising the value.