TOKENS & ASSETS
Token Burn (Token Burning)
Definition
Token burning permanently removes tokens from circulation by sending them to an unrecoverable address. This reduces total supply and can increase the value of remaining tokens.
Example
Example
Binance regularly burns BNB tokens to reduce supply, while Ethereum burns ETH through EIP-1559's base fee mechanism.
Risks to Consider
Risks
- Irreversible action
- Economic assumptions
- Governance decisions