Cryptocurrency Burning Definition
Coin burning could help control the circulating supply of digital tokens; it can also help the developers adjust a token’s dollar value.
What Is Cryptocurrency Burning?
Cryptocurrency burning 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.
* “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.
Understanding Cryptocurrency Burning
Cryptocurrency users are assigned an address used to send and receive coins. You can think of the address like an email address. You can send and receive emails from that email address anywhere you have access to it. A cryptocurrency address is similar—the cryptocurrency network recognizes that address as yours and uses it for transactions.
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