Burning cryptocurrencies and NFTs is comparable to setting cash or art on fire, although the process is a bit more complex than lighting a match.
But why would a crypto project want to destroy its own tokens? There are a number of reasons, which we’ll explore in this article.
What is a token burn?
First up: what does a token burn actually entail? The act of burning a digital asset involves sending it to a place from which it can never be retrieved, also known as a burn address, which effectively removes the digital asset from circulation by locking it up for eternity.
A burn address is a digital wallet that can’t be accessed because it doesn’t have a private key attached to it, like a lock that someone never built a keyhole for. Burn addresses are also sometimes referred to as eater addresses.
Sending a token to a burn address effectively removes the digital asset from its overall supply, locking it up in the hands of nobody and preventing the asset from ever being traded again.
...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...