Bonk ($BONK ) is a cryptocurrency that implements token burn mechanisms to reduce its supply and potentially increase its value. These burn events permanently remove a specific number of tokens from circulation.
Recently, BonkDAO announced the burning of over 1.6 billion BONK tokens, equivalent to approximately $53.5 million, as part of its “BURNmas” holiday campaign. This burn represents approximately 1.8% of the total BONK supply, or approximately 92.7 billion tokens.
In previous events, the BONK community has conducted large burns. For example, 278 billion tokens were burned in April, leading to a 40% increase in the price of BONK in less than 24 hours.
Additionally, in July 2024, the burning of 84 billion tokens from the project’s treasury was approved, with the aim of reducing the circulating supply and improving the scarcity of the token.
These burning strategies aim to decrease the circulating supply of BONK, creating deflationary pressure that could increase the value of the remaining tokens. It is important to note, however, that the actual impact on price depends on various market factors and is not guaranteed.
