Why Crypto Projects Burn Tokens?
Adekunle Joshua
To maintain asset prices, some crypto projects use "coin burn" to manage supply by removing tokens from circulation
In token burn, coins are sent to a burn address, rendering them inaccessible and permanently removing them from circulation
Token burning can be voluntary or implemented through smart contracts or protocols
Reasons for token burning include proof-of-burn for network security, increasing value by reducing supply, and managing price fluctuations
Pros of burning tokens include curbing inflation, maintaining or increasing value, and creating deflationary effects.