XLM Burn Increased Coin’s Centralization, Argues Charlie Lee

[cheezcarls]

After the recent announcement that the Stellar Development Foundation (SDF) had burned roughly 55 Billion XLM, Charlie Lee took to Twitter to point out that based on the math, the SDF had actually increased their control of the coin’s supply by about 8%. This observation was met with some push-back from the XLM community, including attacks on Lee himself.

As BeInCrypto has recently reported, the destruction of roughly half the supply of XLM led to an almost immediate bump in the current market price. The stated reason for this decision “was to be as efficient as possible in our work,” going on to say that “those 55.5 billion lumens weren’t going to increase the adoption of Stellar.”

To read the full news, you can go here

To all of the XLM holders, I have a question for you. Do you honestly agree about Charlie Lee's claims that XLM's coin would increase centralization after that 55 billion burn?

Let me know your thoughts about this one guys! Thanks in advance!

[Confero]

What is certain is that after the announcement of the coin burning by SDF was an increase in XLM prices in the market. Even though the price is not too high, I hope this news will have a positive impact on the price of this coin.

[Niteroy]

Usually, burning part of the tokens positively affects the price of the token, but in the case of XLM, burning coins did not greatly affect its price, and for me it looks strange. Regarding the fact that the burning of XLM coins will increase the centralization of the project, I do not agree with this, because initially Stellar was a centralized project and the burning of coins will not strengthen this centralization in any way.

[damsix]

XLM will be made to rise in price if it is made centrally with 55 billion burned, is this a crazy trick?
I am not sure if the price will go up because if XLM is created to be a centralized coin it will be a big mistake

We all know that xLM is a coin that is not centralized alias decentralized, so why should it be made centralized to raise its price? lol

[jonathancool220]

Basically, burning the coins can indeed cause prices to go up, but the supply of Buy Orders in the market also determines whether prices rise or not.

For example, if only there are a few Buy Orders in the market and there are many Sell Orders, then it is certain that the price will go back down.
Or in other words, Burning coins is not very effective unless it is possible to be accompanied by other good news from Stellar when burning coins.

[kent47400]

I think this is really a crazy idea from the Stellar coin #DevelopmentTeam  to be able to raise the Stelalr price so quickly and it has proven to be very effective.
There have been a lot of altcoins that have the characteristic "Burning" and finally they just go up quickly because after burning the coin supply becomes small and expensive.