Token Burning: What It Is and Why It Matters
Token Burning, the intentional destruction of crypto tokens to lower total supply and potentially raise price. Also known as Burn. Deflationary Tokenomics, a model where token supply shrinks over time, often through token burning mechanisms. Airdrop, a distribution method that gives free tokens to users, sometimes paired with token burning to balance supply. In plain terms, token burning is like taking a handful of coins out of a jar and never putting them back. When a project permanently sends tokens to an address that nobody can access, those tokens disappear forever. This direct reduction in circulating supply is the core of many deflationary strategies: fewer tokens mean each remaining token can become more valuable if demand stays steady. Projects use burning to signal commitment to scarcity, to reward long‑term holders, or to offset inflation from new token emissions. The practice also ties into airdrops—when a project launches a free‑token giveaway, it may burn a portion of its own supply to keep the overall math balanced. This dance between supply cuts and free distribution keeps the token’s economics dynamic and often fuels community excitement.
Deflationary vs Inflationary Tokens: Key Differences & Investment Impact
Oct, 3 2025
Explore the key differences between deflationary and inflationary tokens, their supply mechanics, economic impact, real‑world examples, and how to choose the right model for investing.
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