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RE: Some Thoughts On Tokens, Burns and SMTs
Expected future earnings can give tokens a higher value as demand pushes prices up. I may love cat posts, and be prepared to pay 1.50 STEEM for your Cat token as I anticipate big curation returns. I convert 1.5 STEEM into Steemp, and buy your CAT. That STEEM is locked unless you withdraw it.
I think both STEEM and tokens can go up. It all depends on whether people keep the steemp on steem engine, or withdraw and sell. Over 1 million STEEM is locked up as steemp at the moment, that's 1million (potentially) not being sold on exchanges pushing prices down.
Lots of other factors at play here beyond just how much STEEM gets burnt to create a new token.
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Definitely agree that both steem and token prices can rise at the same time.
Indeed, keeping the steem peg on the exchange is important for the price of steem.
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