🔥 "What is Token Burn?"
Imagine burning a banknote to reduce the amount of money in circulation—it sounds crazy, but in crypto, it’s a strategy to increase value!
That is Token Burn—"burning tokens" to reduce supply, thereby making the token scarcer and potentially increasing its price according to the law of supply and demand.
💡 Simply put:
Token Burn = Sending tokens to a "black" wallet (that no one can access) → Those tokens are permanently removed from the market.
👉 Similar to withdrawing money from the economy
→ Fewer tokens → The price of each token may increase (if demand remains unchanged or increases)
📦 Specific example:
Project A has 1 billion tokens
They "burn" 100 million tokens by transferring them to the address "0x000…dead"
The remaining tokens are only 900 million → supply reduced
→ Token holders will see their value not diluted
→ Like getting "a larger share" of a smaller but tastier pie 😋
🔥 The purpose of Token Burn:
Increase value for holders
Control inflation
Generate attention/media coverage
Stimulate holding behavior (long-term holding)
Do a "cleanup" after Airdrop/farming too many tokens
⚠️ Note:
Burning a lot doesn’t always increase the price → It depends on the actual demand of the market
Some projects use "Token Burn" as a marketing gimmick → Be sure to closely examine the reason for the burn; don’t just take it at face value!
✅ In summary:
Token Burn is the act of "burning" tokens to reduce total supply, making each remaining token scarcer, which can increase its value if there is real demand.
📍 Burning tokens the right way = protecting value for the community.
Burning just for fun = it’s just smoke!
