ATK, New Delhi, June 2 It's hard to watch money going up in flames, but token burning is welcomed by investors that grow excited when cryptocurrencies burn their supply of tokens (crypto coins).Cryptocurrencies are in their infancy and seeking mass adoption to further build up the value of their tokens.
For instance, if an event occurs that boosts the value of cryptocurrency, such as large retailers announcing their trade acceptance with a particular token, then the demand rises for the token. However, if the cryptocurrency reduces its supply, it creates scarcity for that token in high demand. Therefore the token value rises as adoption interest increases for a coin growing increasingly rare.
So yeah, it's pretty much a party for crypto communities when their championed cryptocurrencies go on a token burning spree. Still, which cryptocurrency does token burning best?
Is BNB Auto Burning Binance's Best Token Burning Solution?
The cryptocurrency exchange Binance has its own utility token, Binance Coin (BNB), that provides the exchange users exclusive discounted trading fees when using BNB on the exchange. Traditionally, the BNB token burning mechanism was tied to the trading volume on the Binance exchange. This made BNB centralised to the success of Binance's exchange. After recent regulatory pressure on Binance, massive sell-offs on BNB occurred, followed by an exodus from the exchange--all leading to the poor feasibility of BNB's token burning mechanism.
Now, as Binance bounces back from controversy, they have released an auto burning mechanism for BNB where BNB burning remains independent of BNB trading volume, which created panic for investors to sell off BNB based on fluctuating trading volume.
Still, investors now have to rely on their judgement of whether Binance can survive regulatory pressure in the future or not--leading many to have their excitement flatline for BNB token burning.
PoA Holding Back VeChain's Token Burning Mechanism?
VeChain is being glorified as the holy grail for a business-purposed blockchain compatible with smart contracts. Unlike Ethereum, which focuses primarily on decentralisation with its Proof-of-Service (PoS) mechanism, VeChain deploys a Proof-of-Authority (PoA) mechanism where a central committee govern the network and provides a system catering strictly to business operations with VeChain DApps (decentralised applications).
With VeChain becoming a popular network for businesses and major corporations such as Walmart China and BMW Group, more of VeChain's gas token will be in demand, since it covers transactional fees on the network that is continuing to expand its activity.
However, similar to Binance, VeChain's centrality creates an issue for its token burning. The Ethereum network has many options to expand through its open borders approach for everyone to utilise the network and with no censorship or authoritarianism from a single foundation or committee like VeChain.
DogeMiyagi's Community-Centric Token Burning
Still in pre-launch, (MIYAGI) is a meme coin combining the Doge meme with the Mr. Miyagi character from Karate Kid. This unique fusion runs through the entire DNA of MIYAGI, being a fun and playful coin like Doge, but with the honour and ethics of Mr. Miyagi. This is rare with meme coins that cheaply use a fun meme to represent them but give up on further projects and details to help the meme coin grow for long-term success.
With MIYAGI's burn mechanism, it stays faithful to the Mr. Miyagi theme by designing a unique token burn process mirroring the spirit of the Karate Kid movies. For instance, the burn amounts will reflect the official US release dates of each Karate Kid movie. Finally, before the token launch, a significant burn will take place to honour the passing of Mr. Miyagi at the age of 86.
What MIYAGI's burn process proves is the team's dedication to honouring the memes that inspired MIYAGI, by showing homage to fans of Karate Kid by representing their movie franchise authentically as a legitimate meme coin upholding the ethics of Mr Miyagi--making MIYAGI a trustworthy meme coin that is becoming increasingly rare in the crypto space.
Decentralised Token Burning Is The Best Option
Unlike BNB and VTHO, MIYAGI is run by a DAO (decentralised autonomous organisation) made up purely of its community. The value of MIYAGI isn't at risk of having central owners tank the tokens after being hit by lawsuits or caught up in corruption. MIYAGI's community also fully has anonymity intact, making it a safe and secure choice for investors to support the coin's growth. With good intentions, MIYAGI can climb in value ethically with low risk, leading MIYAGI token burning to be an exciting event for its community, especially for the fans of Karate Kid.
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(ANI | Posted on 03 June 2023, 1695766251 3O239O59O31)