We hear a lot of talk about token burns and reducing inflation. To me, this misses the entire concept of an economy and why crypto projects are slow to take off.
In this video I discuss how an inflation is not material if the growth rate substantially surpasses it. That said, people in crypto want token burns which ultimately end up similar to zombie corporations buying back their stock.
▶️ 3Speak
This is so true!
This is why our main metric for success is new accounts / players every day and how many accounts are active.
Even the LEO buyback with ad money and burn bothers me.
I would rather see a dividend paid out on current tokens and token printing slowed dramatically.
Your current Rank (33) in the battle Arena of Holybread has granted you an Upvote of 18%
Bingo!
Posted using Dapplr
Token burn in most cases represent the gap in projected growth vs actual growth. If token burn is part of tokenomics from very start (like in LEO) then it is different scenario.
Posted Using LeoFinance
According to Milton Friedman, "Inflation Is Always And Everywhere A Monetary Phenomenon."
Posted Using LeoFinance
You can't manage value with inflation and deflation alone a lot of people see it as this silver bullet but it's by no means good or bad either way. What I see is it being the easiest one to target and avoid the other issues because they aren't as easy to narrow down with a fix
Summary:
In this video, Task discusses the recent Leo Finance ads report, highlighting record impressions and revenue. He delves into the concept of burning tokens and challenges the common belief that reducing supply and inflation rate automatically leads to value appreciation. Task emphasizes the importance of focusing on growth through strategic use of revenue for marketing and advertising efforts. He advocates for a shift in mindset towards entrepreneurial thinking to drive project development and user adoption rather than token burning as a quick fix.
Detailed Analysis:
Task starts by addressing Leo Finance's successful month in terms of ad revenue and impressions. He critiques the frequent suggestion of burning tokens as a solution for value increase, arguing it might not address fundamental issues or drive growth effectively. Drawing from his years of economic study, Task emphasizes that inflation is a result of broader economic problems like supply issues, corruption, and wage disparities.
He points out the fallacy of token burns improving poorly performing projects, advocating instead for a focus on solid business strategies for growth. Task proposes using revenue for strategic marketing, such as advertising on platforms like Brave to target cryptocurrency-savvy audiences. He stresses the need for projects to work on their products and invest in long-term growth rather than relying on token burns.
Task highlights the importance of entrepreneurship and marketing in the cryptocurrency space, urging for a shift in focus towards product development and user acquisition. He calls for more attention to be given to growing user bases and product offerings in the crypto industry. Task uses examples like mainstream media decline and the need for constant growth in businesses to illustrate his point about the necessity of proactive growth strategies.
In conclusion, Task challenges the prevalent mindset of focusing on token burns as a panacea, emphasizing the need for real-world business approaches and long-term thinking. He suggests that concerted efforts in product development and marketing will have a more significant impact on project success than token manipulation.