Token Burn

Token burning is a process used in cryptocurrency where tokens are intentionally and permanently removed from circulation. This is achieved by sending the tokens to a wallet address that is inaccessible and effectively unusable, often referred to as a “burn address.” Token burning is used as a mechanism to reduce the total supply of tokens, which can potentially increase the value of the remaining tokens, assuming demand stays constant. It is often employed as a tool for managing token economics, such as controlling inflation, rewarding token holders, or demonstrating commitment to the long-term viability of the project.