Burn

Burning is the process of permanently removing a certain number of tokens or cryptocurrencies from circulation, reducing the total supply. This is typically done by sending tokens to a special “burn address” that is irreversible and has no private key, meaning no one can access or retrieve the burned funds.

The burn mechanism is used to control inflation, increase the value of remaining tokens, or as a feature in some DeFi and NFT projects. Some blockchains, like Ethereum, implement automatic burning of a portion of transaction fees (e.g., EIP-1559), while other projects, such as Binance Coin (BNB), regularly burn tokens to reduce supply and enhance market value.