@door6

Token burns involve permanently removing a certain number of tokens from circulation, typically by sending them to an irretrievable address. This reduces the total supply, which, in theory, increases scarcity and could drive up demand if the project’s fundamentals are strong. Regular token burns can signal the project’s commitment to controlling inflation and maintaining value. However, if burns are used excessively without real demand or utility behind the token, they might not lead to sustained price increases. Investors often view token burns as a positive long-term strategy, but their effectiveness depends on the broader market and project’s adoption.

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