As we know $DOGS team announce to burn 4M USD in tokens at 1PM (UTC)
Today we are going to share details about Crypto Burningđ„
Cryptocurrency burning is the process of permanently removing a certain amount of a cryptocurrency from circulation. This is typically done by sending the tokens or coins to a "burn" address, a wallet from which the coins can never be retrieved. The burn address is a publicly known address with no associated private key, making it impossible to access the coins once sent there.
Burning cryptocurrency can serve several purposes:
Reducing Supply: By decreasing the number of coins in circulation, burning can increase scarcity, potentially leading to an increase in the value of the remaining coins.
Deflationary Mechanism: Some cryptocurrencies, like Binance Coin (BNB), regularly burn a portion of their supply to maintain a deflationary model, counteracting inflationary pressures.
Transaction Fees: In some protocols, a small portion of transaction fees are burned, as seen with Ethereum's EIP-1559 upgrade, where part of the gas fee is burned to regulate supply.
Staking or Rewards Programs: Certain projects may burn tokens as part of a staking mechanism or reward distribution, enhancing the value proposition for holders.
Note:- Burning does not necessarily guarantee a rise in price, but it can help create a healthier and more sustainable token economy.
