Coin Burning

Coin Burning refers to the process of permanently removing a certain amount of Cryptocurrency from circulation, thereby reducing the total supply. This is typically done by sending the coins to a specific address, often referred to as a “burn address,” where they cannot be accessed or used again.

Examples:

• In 2017, the project Ethereum Classic conducted a coin burn to manage its token supply and increase scarcity.
• The Binance Coin (BNB) regularly undergoes coin burns as part of its Tokenomics, where a portion of the total supply is burned quarterly based on trading volume.

Cases:

• TRON (TRX) has implemented coin burns to help increase the value of its remaining tokens and incentivize holders.
• Shiba Inu (SHIB) has seen multiple community-led burns aimed at decreasing supply and enhancing scarcity to attract more investors.