What Is Token Burn? And Why Do Projects Burn Their Own Coins?
🔥 Token Burn refers to the permanent removal of a certain amount of a cryptocurrency from circulation.
This is usually done by sending the tokens to an unusable “burn address” that no one can access.
🧠 But why burn tokens?
1. Reduce Supply:
Fewer coins = higher scarcity = potential price increase.
2. Boost Investor Confidence:
Burning shows commitment to long-term value, not just dumping tokens on the market.
3. Economic Strategy:
It’s like a company buying back its own shares. It can be deflationary and attract more investors.
💥 Real Example:
BNB burns billions worth of tokens every quarter through an auto-burn system — and it’s part of what made it one of the strongest ecosystems in crypto.
💡 Conclusion:
Token burns aren’t just hype. They’re powerful economic tools when done right.
🧨 Have you ever held a token that went through a major burn?
Let us know how it affected your strategy!
#TokenBurn #BNB #CryptoSupply #CryptoEducation #Deflationary #BinanceFeed #Web3Strategy