Many newbies may not understand what "burning the pool" and "locking the pool" are, and what the difference is between them. Let me explain with a simple example.

When the project party opens, the initial funds, such as 1 ETH, will be placed in a safe. Participants buying tokens are equivalent to depositing money in this safe, and this 1 ETH can be regarded as the company's start-up capital.

Locking the pool means that although the project party puts this 1 ETH into the safe, they still have the key to the safe, which means that they can open and close the safe at any time. Even if the safe is locked for 10,000 years, as long as the project party has the key, they can take out all the ETH in the safe at any time, including the funds deposited by the participants. In this case, the value of the token will return to zero and the participants will lose all hope.

The concept of burning the pool is similar to the above principle, but it can be understood that the project party has thrown away the key to the safe, and no one can open the safe. In this way, no matter how the participants take out the tokens, there will always be 1 ETH left in the safe. This means that the company's start-up funds will always exist, and even if the coin price drops sharply, the project still has a chance to rise again.

#CPI&PPI来袭，美国通胀升还降？