#BullishIPO

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 currency (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 tokens burned?

1. Sending coins to a non-usable address

Coins are sent to an address known as the '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 reduces the total supply upon burning.

This function can be:

Automatic (executed with every transaction)

or Manual (executed by management at a specific time)