Many of us have heard of coin burning or token burning
The innovative way to enhance value and achieve balance in the world of digital currencies! 💪📈
◧ What is coin burning?
Coin burning is the process of destroying a certain percentage of cryptocurrency to get rid of it permanently.
This is done by sending the currency to an inaccessible or non-refundable address.
This action reduces the total supply of the currency and thus enhances its value.
📈 Benefits of burning currency:
Reducing the total supply: By reducing the amount of currency in circulation, the percentage of scarcity is increased, and this may lead to increased demand and thus the value of the currency.
Improving the balance: Burning the currency balances supply and demand, as supply is reduced while demand can remain constant..
Or increases, which leads to market stability.
◧ Enhance confidence: Coin burning reflects a project’s commitment to long-term value and sustainability, and it enhances confidence among investors and the financial community.
▪️Examples of currency burning:
#Binance Coin (#BNB)
Binance periodically burns the coin based on operating profits, which contributes to increasing the value of #BNB and enhancing market stability.
#Ethereum (#ETH):
During the #Ethereum 2.0 upgrade, it is expected to burn a large amount of currency to convert it to #Pos technology which aims to improve performance and reduce power consumption.
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