$ETH Cryptocurrency Burning

"Cryptocurrency burning" refers to the permanent removal of a number of tokens or coins from circulation. This is usually done by transferring the relevant tokens to a burn address, which is a wallet that can never be recovered. This is often described as destroying tokens and coins.

A wallet address is assigned to cryptocurrency users for sending and receiving coins. You can think of the address like an email address. You can send and receive emails from this email address anywhere you have access. A cryptocurrency address is similar – the cryptocurrency network recognizes this address as yours and uses it in transactions. This is your wallet address.

Cryptocurrency is burned when coins are sent to a wallet address that can only receive coins. These addresses are also called “burn” or “sink” addresses. Cryptocurrency wallets have private keys that allow you to access the tokens you have stored in them; however, burn addresses do not have a private key, which means the tokens are gone forever.