What is coin burning?

Coin burning happens when a cryptocurrency token is intentionally sent to an unusable wallet address to remove it from circulation. The address, which is called a burn address or eater address, can't be accessed or assigned to anyone. Once a token is sent to a burn address, it's gone forever.

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.

Are buybacks and coin burning the same thing?

While buybacks and coin burning aren't an exact match, they're similar concepts that can serve the same goals. Coin burning started becoming popular with cryptocurrencies in 2017 and 2018 when multiple coins, including Binance Coin ( CRYPTO:BNB ), Bitcoin Cash ( CRYPTO:BCH ), and Stellar ( CRYPTO:XLM) burned tokens to cut supplies and boost prices.

How do miners burn coins?

To burn the coins, miners send them to a burner address. This process does not consume many resources—other than the energy used to mine the coins before burning them—and ensures that the network remains active and agile.