Why is Dogecoin burning their coins?

In the world of cryptocurrency, no coin is more common than Dogecoin.
In fact, by the end of 2014, there will be 100 billion dogecoins in existence, far more than any other coin out there. As a result, the supply is far higher than the demand. That may be a result of a lack of foresight from the Dogecoin devs, since none of them thought Dogecoin would take off like it did.
In a slight response to this, the Dogecoin community is currently voluntarily destroying their Dogecoin in a “burn” event called Dogeparty. The Dogeparty is a two-sided event; one side being the destruction of Dogecoin, the other being a new coin creation.
Dogecoin users send them off to a bunk address, essentially destroying the coin. In return, they receive Dogeparty (XDP), a new cryptocurrency.
The going rate is 1000 DOGE for 1 XDP, though early adopters will receive a 50% bonus.
The burn phase started on Tuesday August 12th, and lasts for 30 days. After that, burned coins will no longer be accepted.
While it seems counterintuitive for users to destroy their Dogecoin, Dogeparty could go a long way toward helping Dogecoin recover from its recent fading fortunes.

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