Token burning is the process of permanently removing coins from circulation, thereby reducing the total supply. Token burning is usually performed by the development team behind a particular cryptocurrency asset. It can be done in several ways, most commonly by sending the coins to a so-called “eater address” or “dead address”. Its current balance is publicly visible on the blockchain, but access to its contents is unavailable to anyone.
Why Is Token Burning Important?
There are several benefits of a coin burn and they are as follows:
Increase in the value of the token
This is probably the most well-known benefit of a coin burn. Coin burn reduces the overall circulation of the token, thereby the overall supply decreases. It might potentially result in an increase of the token value. The constant burning of the coin helps to keep a steady value.
A steady value of the token
Constant token burning helps to keep a steady value of the token and it also bets for a long-term price increase. Coin burn can potentially
How Does Token 🔥 at PancakePoll Work?
The practice of burning may involve the project’s developers buying tokens back from the market or burning parts of the supply already available to them. Here, at PancakePoll, there are several deflationary mechanisms in place.
Buy Vote feature will be 100% sent to the dead address.
25% of all the purchases in GameFi are used for token burning.
