Alarm bells! 🚨 re ZOMG

Interesting idea.
I’ve always been dubious about the idea that burning coins automatically increases the value of the rest, because I don’t quite understand the mechanism that makes it happen. But if we believe that the mechanism is supply-and-demand on the trading markets, obliviously to any systematically-calculated fundamentals, then I wonder…

ZEC that is gathering dust in the ZOMG treasury is off the trading markets, just like burned ZEC. So wouldn’t it have the same effect on price, until it’s used?

Of course, the mechanism may instead (or in addition) be people reasoning about some fundamental total coin value = market cap, and dividing it by the amount of current or future (unburned) supply, in which case burning is different.

I have no idea which is more right and under what conditions, but it’s worth thinking about whether burning actually buys you anything in the rational economic/tokenomic sense.

And then there are the optics/memetics of burning, which are an even greater mystery to me.

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