Coin burn refers to the process of permanently removing a specific amount of a cryptocurrency from circulation. This is typically done by sending the coins to a public address that has no known private key, ensuring that the coins cannot be accessed or used by anyone.
The main goal of a coin burn is to reduce the total supply of the cryptocurrency, which can create scarcity and potentially increase the value of the remaining coins in circulation. This can benefit investors and holders of the cryptocurrency by increasing the value of their holdings.
Coin burns are often seen as a way to manage the supply of a cryptocurrency and to create a deflationary effect. By reducing the total supply of a coin, the value of the cryptocurrency can theoretically increase over time as the remaining coins become more valuable.
Overall, coin burn can be a strategic decision made by cryptocurrency projects to help manage their token supply and potentially increase the value of the cryptocurrency for investors and users.
