Everyone is talking about burning tokens $WLFI , but many do not understand what it means, let me explain it to you in simple words.
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🔥 Token burning (burn) is the process by which a portion of tokens is permanently removed from circulation. In theory, this reduces the supply, which can positively impact the price.
1. Price depends not only on the number of tokens.
Even if there are fewer tokens, there must also be demand for them. If there is no demand, the price will not rise and may even fall.
2. Burning ≠ automatic growth.
Burning creates scarcity, but the real price is determined by the balance of supply and demand in the market.
3. Example from practice.
Many projects (for example, $BNB or $SHIB ) have a token burning mechanism. Sometimes this helps maintain the price, but growth depends on investor interest, project development, news, liquidity, and the overall market situation.
4. The effect can vary.
If demand is rising or stable → a reduction in supply may push the price up.
If demand is falling → even burning will not save from a decline.
👉 It can be said this way: token burning creates conditions for growth but does not guarantee it.