What does burning tokens mean?
Burning tokens is the process of permanently removing them from circulation, often by sending them to an inaccessible wallet address known as a "burn address." This process reduces the supply and significantly affects the token's price.
📉 If 80% of the total supply of the token is burned, only 20% of it will remain in circulation.
For example, if the total supply is 1 trillion units, after burning, approximately 200 billion units will remain in circulation.
#shiba⚡
💡 Think of it this way: if the total market cap remains constant, reducing the supply will lead to an increase in the value of each unit of the token, while maintaining the overall value.
🔍 Is burning possible?
Yes, especially in projects where founders or developers hold a significant share of the token, as they can strategically implement burn operations to increase the token's value and boost confidence among investors.
Which one do you think deserves to be burned...
