$TREE

🔁 Types of Burn

Type Description

Manual Burn Carried out by the company or development team by sending coins to the burn address

Automatic Burn Programmed to occur during specific transactions (like trading fees)

Buyback & Burn The project buys coins from the market and then burns them

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✅ Reasons for Coin Burn

Reduce supply and increase scarcity

Support price and increase the value of the coin

Reward the community and coin holders

Improve deflationary model

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🧠 Practical Example:

A coin like BNB (Binance Coin) performs periodic burns:

Uses platform profits to buy BNB from the market

Then burns it

This reduces supply and impacts the price in the long term