- This topic has 11 replies, 2 voices, and was last updated 1 year, 3 months ago by Freakin_honeybadger.
- Saturday, December 18th, 2021 at 20:37 #52700odixParticipant
I have read this may have a deflationary effect. Is this a good thing or a bad thing ?Saturday, December 18th, 2021 at 20:44 #52702gilg2
**GOOD**Sunday, December 19th, 2021 at 00:36 #52708Ghola_Mentat
It won’t be deflationary. As I understand it, the burnt tokens will go to the foundation or whatever they call it and then be used to fund projects.Sunday, December 19th, 2021 at 00:54 #52705CorneliusFudgem
In theory if they are being burned such that MATIC is becoming deflationary – then this should in theory be good for price appreciation (i.e. demand goes up as supply goes down)Sunday, December 19th, 2021 at 02:12 #52704Thebadmamajama
A subtle difference is the tokens will be put into a foundation contract, and taken out of circulation at first. The community votes on what to do with them, such as paying validators more, or burn them.
All in all, it will have the effect of reducing token supply, and if demand is the same or increasing, you could logically assume it will put upward pressure on MATIC price.
EIP-1559 on Polygon – this seems like a thief of fees… from ethereumSunday, December 19th, 2021 at 02:22 #52703Chef_Mike_NFTs
How can we sleep when these tokens are burning?Sunday, December 19th, 2021 at 05:00 #52706ckh27
It amounts to 0.27% of supply per year. So… food for thought.Sunday, December 19th, 2021 at 06:05 #52707Holiday-Pen
When there is a fixed supply, a token burn is a bad thing and short minded for the long term utility of the network as tokens become more scarce over time while the cost of using the network goes up and promotes a HODLing nature which becomes more concentrated.
This is a short term tactic in an attempt to get token appreciation and attract short term attention; it’s better to work on utility.
The better solution for adoption would be to:
1) Build a bridge or functionality to allow direct import from major US exchanges.
2) Fix NFT issues with hardware wallets and Metamask plus various RPC errors to provide a seamless stress-free NFT blockchain.
With these two things MATIC will take off.Sunday, December 19th, 2021 at 07:54 #52709aliusman111
Burn is too small, not going to make a huge difference in 10 billion supply but Buring is good for pricing, so burn anything we can 😜Sunday, December 19th, 2021 at 14:48 #52710Low_Singer_2222
It’s a good thing ! Why not ?Sunday, December 19th, 2021 at 16:46 #52711_PocketChange_
I smell burnt toast.Monday, December 20th, 2021 at 08:27 #52712Freakin_honeybadger
The roof the roof the roof is on fire!
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