๐ฅ What is Token Burning? | Why Crypto Projects Burn Tokens?
Ever seen a crypto project โburning millions of tokensโ and wondered why? ๐ค
Letโs break it down ๐
---
๐ง Token Burning = Removing Coins Forever
Projects like $BNB, $SHIB, $LUNC, and $CAKE permanently destroy tokens by sending them to an unspendable โburn address.โ
This reduces total supply and increases scarcity โ just like stock buybacks!
---
๐ Why Do They Burn Tokens?
1. To Reduce Inflation ๐งฏ
2. To Boost Value Per Token ๐
3. To Reward Holders ๐ฐ
4. To Show Commitment ๐ฅ
---
๐ก Example:
๐ Binance has burned over 165 million $BNB to date
๐ถ $SHIB famously burned 410 trillion tokens (Vitalikโs burn + community burns)
---
๐ฅ Final Thought:
Burns donโt always mean price pump โ but they show the project is serious about long-term value.
๐ฌ Do you hold any burn-based tokens?
