Token Burn
Permanently destroying tokens by sending them to an unspendable address, reducing supply — sometimes meaningfully, often as marketing.
A token burn permanently removes tokens from circulation by sending them to a provably unspendable address. Projects burn tokens to reduce supply, offset issuance, or return value to holders — Ethereum, for instance, burns a portion of every transaction fee, making its supply growth fluctuate around zero.
Burns are only as meaningful as their math. Destroying 1% of supply while emitting 10% annually changes nothing; scheduled burns tied to real revenue (like exchange-token buyback-and-burn programs) can matter. Treat burn announcements as a claim to verify against tokenomics, not as automatic bullishness.