@junkiesdow
Token burn is the process of deliberately destroying a certain amount of a cryptocurrency’s tokens to reduce the total supply. This is often done by sending tokens to a wallet with no private key, making them inaccessible. The idea behind token burns is to create scarcity, which could increase the token's value if demand remains constant or grows. By reducing supply, the project aims to boost the perceived value of each remaining token, potentially driving up prices. Token burns can be done regularly or as part of specific events like reaching milestones or during "deflationary" phases in the token’s lifecycle. However, the long-term effectiveness of token burns on price depends on market demand and overall project fundamentals.
0 reply
0 recast
0 reaction