Typically token burning does nothing generally. I could burn my entire stake on my account and Hive won't likely move a cent.

The main purpose of burning is to reduce the supply and create scarcity.

There are ways it can do things though, if the burns are significant, systematic, and marketed.

First let me give you an example.

You go to your school bake sale, you stand in line and when it is your turn you ask for a pumpkin pie. They tell you it will be $10 and they pull a pie off the stack of 100 other pies. You pay your $10 and move on.

Let's say you instead go and they only have one pie, and you love pumpkin pie. Would you pay more than $10? What if the person behind you said they will definitely be buying that pie and will pay twice the amount to get it. You can probably see where I'm going here.

Another scenerio is here on Hive. Let's say I make a post promoting my next big thing. It gets $50-100, and I get half of that as an author. If I made that same post, but instead burned rewards, I will likely get a lot more votes as voters know I won't benefit from it (outside of more exposure) so they are likely to vote more as a result.

Another example is my own project STEMGeeks, I frequently burn 50-100% of the weekly reward pool due to multiple things I do. This takes an already super low inflation (6% compared to 20% of many tribes) and turns it to almost 0% inflation. This in theory should make the token super valuable, and the price should go through the roof as a result. This isn't the case though as most people are not interested in posting or curating Science and Technology content, but it does serve a purpose for me. It allows me to minimize the inflation and almost completely eliminate it, until we have enough users on Hive and by association STEMGeeks to justify the inflation. At that point, I would hope the demand would be much higher.

In short, burning tokens generally doesn't do anything unless it massively reduces the inflation to a point it makes the token far more attractive, but it can however be a very attractive option compared to someone else benefiting from something. For example, in STEMGeeks I burn all the rewards earned by the official accounts to further reduce inflation and prevent the token owner (me) from gobbling up all the inflation from the community.

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