🔥 What is Token Burning? | Why Crypto Projects Burn Tokens?
Ever seen a crypto project “burning millions of tokens” and wondered why? 🤔
Let’s break it down 👇
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🧠 Token Burning = Removing Coins Forever
Projects like $BNB, $SHIB, $LUNC, and $CAKE permanently destroy tokens by sending them to an unspendable “burn address.”
This reduces total supply and increases scarcity — just like stock buybacks!
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📉 Why Do They Burn Tokens?
1. To Reduce Inflation 🧯
2. To Boost Value Per Token 📈
3. To Reward Holders 💰
4. To Show Commitment 🔥
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💡 Example:
📊 Binance has burned over 165 million $BNB to date
🐶 $SHIB famously burned 410 trillion tokens (Vitalik’s burn + community burns)
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🔥 Final Thought:
Burns don’t always mean price pump — but they show the project is serious about long-term value.
💬 Do you hold any burn-based tokens?
