Token Burning, Delegating and Staking
Token Burning, Delegating and Staking oh my. What is going on with Crypto tokens?
Token Burning a deflationary measure of buying back tokens, think of it as a stock buyback program in the equity world. At the time of this writing there are two options for Token Burning. The firm can either purchase existing tokens from the market (known as buy-back) or it can choose to take existing currency out of circulation. The results are the same, less Tokens in the market, perhaps creating a supply issue and placing pressure upward on the price.
Token Staking - I am sure you have heard of utilizing this method to create passive income. This process requires that you send your tokens over to another party (aka the Stake Pool) and they run and manage the nodes and you receive a specific payout amount based upon the amount of Tokens staked based upon their payout schedule. Each requires different levels of tokens to gain access to Staking for example to Stake THETA you need a minimum of 10,000 Tokens. For Cardano you will also need a minimum of 10K Tokens, their payout schedule is called an epoch and is every 5-days.
Token Delegating - A process very much like Staking, however, the tokens remain under your control in your wallet they just can NOT be spent while in the delegate mode. Don't stake all your tokens, as in an emergency it will take up to 60-hours to get your tokens back. You have to determine what the right HODL vs Staking risk is for your risk style.
Summary - Token burning is done by the firm in control of the Token itself, while staking and Delegating are options available to you as a token holder.
