Burning Mechanism

Burning Mechanism is the process in which users can remove tokens (also called coins) from circulation, which reduces the number of coins in use. The tokens are sent to a wallet address that cannot be used for transactions other than receiving the coins. The wallet is outside the network, and the tokens can no longer be used.

KEY TAKEAWAYS

• "Burning" a cryptocurrency refers to the act of sending a token to an account that can only receive them.

• Wallet addresses used for burning cryptocurrency are called "burner" or "eater" addresses.

• The act of burning effectively removes tokens from the available supply, which decreases the number in circulation. “