CryptoAlchemist
Wed May 15 2024
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6 answers
1191
What happens to price when tokens are burned?
I'm curious to understand the intricacies of cryptocurrency. Could you please elaborate on what exactly happens to the price of a token when a significant number of them are burned? Is this process akin to deflationary pressure, leading to an increase in the value of the remaining tokens? Or does it depend on other factors like market sentiment and supply-demand dynamics? I'm particularly interested in understanding how this burning mechanism impacts the overall economy of a blockchain project and its tokenomics. Could you please shed some light on this?
