🔥 #TokenBurn101: Can burning tokens increase value?
In the crypto world, "burning" tokens does not destroy value — it is an economic strategy.
📌 What is Token Burn?
🔹 It is the process of permanently removing tokens from circulation
🔹 Done by sending the tokens to an address that no one can access (burn address)
🔹 Objective: reduce supply and potentially increase the value of the remaining tokens
💡 Why burn tokens?
🔸 Control token inflation
🔸 Reward long-term holders
🔸 Demonstrate project commitment
🔸 Increase scarcity and attractiveness of the asset
🔥 Famous examples:
🔸 BNB – Quarterly burns based on Binance fees
🔸 SHIB – Community burns tokens to create scarcity
🔸 Ethereum – EIP-1559 burns part of the transaction fees
⚠️ Remember:
❌ Burn ≠ guaranteed appreciation
❌ Not all burns are sustainable
✅ It is one of many variables in tokenomics
➡️ Token burn is like pruning a tree: done at the right time, it strengthens growth.
