Coin Burn

Coin burn is a process through which a certain number of cryptocurrency tokens are permanently removed from circulation, reducing the total supply. This is typically done by sending tokens to an unspendable address or "burn" wallet, where they can never be accessed or recovered. Coin burns are often employed as a deflationary mechanism to create scarcity, ultimately boosting the value of the remaining tokens in circulation.

By lowering the circulating supply, coin burns can lead to an increase in the price of the asset, benefiting long-term holders. Some projects schedule regular coin burns, while others do it as a one-time event to adjust tokenomics or maintain a stable ecosystem. The success of a coin burn often depends on how well the market responds to the reduced supply and increased scarcity.