RE: 3Speak's STEEM Burn Initiative! #NewSteem
Great initiative, the HoboDAO will have a technique that will be very similar to burning STEEM. The HoboDAO will be a collection of multisignature accounts that are managed in a decentralized way with one account receiving SP from curation and the SP being locked and requiring many members known as Senators having to reach consensus before any SP could be liquidated.
Ideally, the SP of the HoboDAO's curating account will be permanently staked and only keep growing, locking up STEEM in the ecosystem rather than being dumped on the market like bot services do.
Additionally, our utility token, HBO, will be used by contest submitters to @hobodao which will be an account that will require over 60 people to reach consensus in order for the tokens to be reintroduced into the market. So that will also be an effective burning strategy.
Want to know more? Join our discord and we'll chat. We're happy to invite you into the HoboDAO as a member.
https://discord.gg/sgHyY6c - HoboDAO Discord Server
Dear @hobo.media
Interesting idea. However I've noticed that burning tokens is a very trendy thing lately. And as much as I understand that it does slow down inflation and reduce growth of total supply - I still don't know how could it affect the price.
Supply overall is still growing and all burned tokens won't be able to catch up with inflation. On top of that burning tokens itself won't create demand. Without increased demand, it really won't help that much to burn those tokens I'm afraid.
Anyway I value what you're trying to do and I do not argue. Just wanted to share my thoughts and hopefully I can be proven wrong.
Yours
Piotr
You're right that burning tokens has no value in itself. Hobo tokens are not really burned either, really just locked up with a high threshold required in order for them to be released back into the market.
The value of the Hobo token is not the burning process, but the submission fee requirement. In order for content to be reviewed by the decentralized curation community (the HoboDAO) a 500 HBO fee must be submitted to @hobodao with the address of the post submitted for review in the memo area of the transaction. In this way, it is very similar to the bot services, except that it is a fully human-powered curation system.
The value of Hobo tokens will depend on the value of the HoboDAO's ability to reward the winning contestants. We've already made partnerships with a variety of token projects allowing us to provide their tokens as rewards, as well as offering a 100% upvote from the HoboDAO and a 10x reward in Hobo tokens (for 1st place).
In theory, the @hobo.media account will only accumulate more and more SP as the Casters continue curating content. And due to the fact that it will require the consensus of Senators to power down the SP, the HoboDAO's curating account should just grow over time. The increased SP value of the HoboDAO should add value to the Hobo token, and as fewer and fewer tokens exist in the market the remaining tokens should grow in value.
I just realized that I never actually thanked you for this amazing comment @hobo.media
Yours
Piotr