What is a token burn?

In a token burn, the project doing it acquires the tokens that it wants to remove from holders. It then sends those token to an account where they can’t be used. Token burning can be compared to stock buyback in the equities market. Some companies repurchase their shares from investors from time to time.

What does it mean to burn crypto?

“Burning” crypto means permanently removing a number of tokens from circulation. This is typically done by transferring the tokens in question to a burn address, i.e. a wallet from which they cannot ever be retrieved. This is often described as destroying tokens. A project burns its tokens to reduce the overall supply.

Is there a way to burn ERC20 tokens?

ERC20 tokens sometimes include a .burn () function which literally decreases the number of tokens in circulation by lowering the number of tokens a specific address (most often the reserve-address of the developers) owns. Yes thanks, there's that too. I was only talking about burning when no burning mechanism was implemented.

What is coin burning?

Coin burning is the process by which digital currency miners and developers can remove tokens or coins from circulation, thereby slowing down inflation rates or reducing the total circulating supply of coins, according to the Motley Fool.