One of the most powerful ways crypto projects control supply and boost price is through token burning — permanently removing coins from circulation. But how does it work, and why should you care?

Let’s break it down 👇

🧯 What Is Token Burning?

When a project “burns” tokens, it sends them to an address no one can access — meaning those tokens are gone forever. This reduces total supply.

It’s like buying back shares in the stock market — it creates scarcity.

📈 Why It Affects Price

As supply drops and demand rises, the price often follows. It’s basic economics.

Projects like:

🔸$BNB

BNB — burns via real profits from Binance ecosystem

🔸 $SHIB

SHIB — community-led burning to reduce excess supply

🔸$LUNC

LUNC — now uses burning as part of its revival strategy

have all seen price surges around burn events.

📌 What You Should Watch For

Look out for:

✅ Scheduled or regular burns (e.g. BNB’s quarterly burn)

✅ Burn rates (how fast coins are burned)

✅ What fuels the burn — revenue, volume, or gas?

Tokenomics matter — and burn mechanisms show how serious a project is about long-term value.


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