Coin burning refers to the process of reducing the supply of a particular currency by destroying or removing a specified amount of it from circulation. The term is often used in the context of cryptocurrencies, where some coins may be “burned” by sending them to an unreachable wallet address (such as a wallet whose private keys cannot be retrieved) or by performing automated processes that result in the cancellation of those coins.

### Reasons for Coin Burning:

1. **Reducing Supply**: Reducing the amount of currency available in the market can increase its value.

2. **Incentivizing Investors**: Burning a currency can increase investor confidence.

3. **Balance**: In some cases, burning is used to balance the currency’s economic system.

### Example of Coin Burning:

If there is a particular cryptocurrency, and the company responsible for it decides to burn 10% of the total supply, that percentage will be sent to an unavailable address, reducing the total supply and increasing potential demand.