#CreatorPad

Token Burn is the permanent removal of a certain number of coins from circulation, aimed at reducing supply and increasing the value of the remaining coins (theoretically). This process is similar to "destroying" coins, and they cannot be recovered after burning.

Here’s a simple explanation of how burning works:

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🔥 How are coins burned?

1. Sending coins to a non-usable address

Coins are sent to an address known as a "burn address."

This address does not have a private key owned by anyone, making the coins sent to it unrecoverable.

An example of a common burn address in Ethereum:

0x000000000000000000000000000000000000dEaD

2. Updating the smart contract

Some projects program a function in the smart contract that decreases the total supply upon burning.

This function can be:

Automatic (executed on every transaction)

or manual (executed by the administration at a specific time)