Token Burns: Optimizing Supply and Demand

Burning tokens means sending them to a "dead address" that no one can access. This permanently removes them from supply.

Why Burn?

• Deflation: Reducing supply makes remaining tokens scarcer. If demand holds, price goes up.
• Dividend Substitute: Instead of paying dividends (which is a security), projects buy back and burn tokens to reward holders.

Examples

• BNB: Quarterly burns based on volume.
• ETH: EIP-1559 burns a portion of every transaction fee.

Calculate the deflationary impact with the Burn Rate Calculator.