Token Burning
Token burning permanently removes tokens from circulation by sending them to an inaccessible wallet address. It's the crypto equivalent of stock buybacks.
Understanding the Concept
Burns reduce supply. Basic economics: less supply with same demand means higher prices. Projects burn tokens for various reasons: fee mechanisms (Ethereum's EIP-1559 burns a portion of gas fees), buyback-and-burn programs (exchange tokens like BNB), or deflationary tokenomics. The impact depends on scale—burning 0.01% annually is meaningless. Burning 5% is significant. Check the burn rate versus inflation rate. If more tokens are created than burned, supply is still increasing. Real burns send tokens to provably unspendable addresses. Some "burns" just move tokens to team wallets.
Real-World Example
BNB does quarterly burns based on Binance's trading volume. They've burned billions in BNB over the years, reducing total supply from 200M to 150M. Each burn announcement typically pumps the price.
How Strykr Helps
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