What is Token Burning?. Token burning permanently removes tokens from circulation by sending them to an irretrievable address or reducing contract supply.
How it works
Burns can be manual, scheduled, or tied to protocol fees; supply metrics update accordingly.
Why it matters
Burns can counteract emissions or align incentives but do not guarantee price increases.
Common pitfalls
- Treating burns as a substitute for revenue
- Misreading supply metrics after burns
- Assuming burns are always transparent
Quick example
A protocol burns a portion of trading fees each week and publishes proofs on‑chain.
See also
- Supply
- Market Cap
- Tokenomics
TL;DR: What is Token Burning? defined in plain English with practical next steps.
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