# Burning

`kaal:entity:burning`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `burning`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

3 claims across 1 works, 2019 to 2019.

**2019**

- [3402701-008](https://wulfkaal.github.io/claims/3402701-008) [mechanism/argued] -- Under the quantity theory of money, minting twice as much currency halves its price and burning half of the existing currency doubles it, which is the mechanism by which a supply rule can theoretically stabilize price.
  > QTM dictates that minting twice as much currency will halve its price, and burning half of the existing currency will double its price
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701
- [3402701-009](https://wulfkaal.github.io/claims/3402701-009) [condition/argued] *(failure mode)* -- The quantity theory calculations behind minting and burning hold only in the ideal case; in practice the success of a stabilization scheme depends on how the money is actually printed, distributed or burned.
  > Such calculations are only valid in the ideal. In practice, the scheme's success depends on how the money is printed and distributed or burned
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701
- [3402701-013](https://wulfkaal.github.io/claims/3402701-013) [design/argued] -- Bonds are the appropriate burning mechanism for a temporary drop in currency price caused by larger economic instability such as an act of God or war, since bonds can be redeemed above their sale price once the economy rebounds.
  > Bonds should be used to address a temporary larger economic instability which lowers a currency's price--due to an act of God, for instance, or war
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/burning.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.