Burning Mechanism

What's Burning Mechanism?

When a token holder decides to "burn" their token, they send the token to an inaccessible address. This action simulates the burning of the token, rendering it unusable within the system.
The "burn token" mechanism is commonly used for the following purposes:
  • Decreasing token supply:
  • By burning tokens, the remaining token supply in the system decreases, contributing to inflation control and creating value for the remaining tokens.
  • Increasing token value:
  • As the token supply decreases, the supply-demand ratio may change, potentially leading to an increase in the value of the remaining tokens.
  • Community involvement:
  • Burning tokens can be used as a way to engage the community, as token holders benefit from maintaining and increasing the value of the remaining tokens.