· Token burning renders burned tokens unusable
· Tokens to be burned are sent to the eater address or blackhole
· Token burning is employed by smaller blockchains and altcoins
· Token burns reduce tokens in circulation and increase value
Token burning is the permanent deletion of existing crypto tokens from circulation, making them unusable. The burning process is done intentionally by the creator of the coin, who also determines how many coins to burn at a time. The removed tokens are sent to the blackhole or eater address to be destroyed.
Token burning is a concept employed mainly by smaller blockchains and altcoins to command the supply to offer incentives to investors. The ability to burn tokens gives cryptocurrencies their DeFi appeal, setting them apart from fiat currencies.
Token burns are done to reduce the number of tokens in circulation, therefore increasing their valueKibet Elikana