☄️ 🔥 Throw away money to invest long term?! BURN: Their terrific attitude. 🧐 #INJ gets it. Create conditions that set up for success. Totally Decentralized. This is why will win.Burning coins is a deflationary technique that removes coins from the market by sending them to a dead-end address. This lowers the total number of coins and makes the remaining ones more scarce and valuable. It is a way of increasing the coin’s price and giving more buying power to the holders.
A burn auction is a system that lets users compete to burn coins and get rewards in exchange. For instance, in users can stake INJ tokens to become validators and secure the network. The staked tokens are gathered in a burn auction pool and are destroyed regularly, creating a steady demand and supply cut for INJ tokens. This also makes the validators and the token holders have the same goals, as both gain from the higher value of INJ.
The reason for burning coins is that it is a way of sharing value with all coin holders, not just a specific group or entity. By burning coins, the value of each coin grows equally, as there are less coins in the market. This is different from other ways of sharing value, such as dividends or buybacks, which may be unfair to some holders, or cause tax or legal problems.
Burning coins is not wasting money, but rather investing in the long-term value of the coin. It is a way of showing trust and dedication to the coin’s future and creating a positive cycle that draws more users and investors. It is also a way of lowering inflation and volatility, which can improve the coin’s stability and usability.