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Burned

When cryptocurrency tokens or coins are purposefully and indefinitely withdrawn from circulation, they are referred to as “burned.”

Often blockchain networks use the mechanism of “burning” tokens to encourage network users to buy and invest in protocol-specific tokens. Burning tokens reduces the cumulative total token supply, potentially raising the value of the underlying commodity, which is typically used as a counter-inflationary tool.

The development team behind a cryptocurrency asset is normally in charge of token burning. It can be achieved in a number of ways, the most common of which is to submit the coins to a so-called “eater address,” which has a public balance on the blockchain but no access to its contents.


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