What is cryptocurrency burning?

Cryptocurrency burning is the process in which users can remove tokens (also called coins) from circulation, which reduces the number of coins in use. The tokens are sent to a wallet address that cannot be used for transactions other than receiving the coins. The wallet is outside the network, and the tokens can no longer be used.

What is coin burning?

When a cryptocurrency community decides that they want or need to destroy units of a specific cryptocurrency, they use a process called coin burning. Burning crypto is the process that effectively takes those tokens out of circulation, reducing the total supply of that coin and in some cases increasing demand.

Why do crypto creators burn the coins?

Prof. Chebbi said crypto creators burn the coins in an attempt to increase the value of the coins that remain in circulation. It is not very dissimilar to what happens in the realm of Oil.

Should you burn cryptocurrency tokens?

Burning large amounts of cryptocurrency tokens can have the effect of increasing the scarcity of that token. As such, burning can be used as a way of controlling inflation.