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What is coin burn?

Being in the world of cryptocurrencies, you have probably come across many terms that are not understandable to you. Some occur frequently and others rarely. To those that should be known, definitely add the term "COIN BURN". It is a simple and logical term and you may need to know it.

That is, "burning coins" - it is nothing else than the irretrievable removal of units of a given cryptocurrency / token. In practice, it is nothing more than reducing its total supply. Burning coins can, for example, be written in a smart contract and appear, for example, periodically to prevent too much emission of a given cryptocurrency. Limited supply allows you to keep your digital currency in check (see the term inflation), make it unique and add value. It is usually a well-thought-out and sensible mechanism described in the white paper. It has nothing to do with the loss of tokens by their owners. So worry, it's not burning your tokens kept in your wallet :)

Smoking is also beneficial for the owners of exchanges because, in addition to increasing the value of tokens, it allows for obtaining new users, i.e. exchange clients.

What are the main reasons for coin burn? - more effective consensus mechanism, this applies to coins that accept Proof-of-Burn (POB) and increasing the value of the token (the law of supply and demand).

What does burning tokens look like in practice?

  1. Each BNB owner calls the burn function, thereby letting the smart contract know that he wants to burn a certain amount of BNB units.
  2. The contract then verifies that the owner has the amount of BNB in their portfolio and that the number of units they indicated is positive, as only a positive amount can be burned.
  3. If the caller does not have enough BNB units, or if the given number is invalid (such as 0 or -5), the burn function will not be executed.
  4. However, if it has enough to carry out the incineration, the amount of BNB it indicates will be deducted from its portfolio. At this point, the total BNB supply is updated (reduced) and the indicated BNB units are burned.

Transactions related to the repurchase of native tokens are announced publicly on the blockchain network. Therefore, do not worry, we cannot physically miss this information.

However, all exchange users must be vigilant. It is good to know when such a situation will take place. It is dated that the tolens were burned for the first time in 2017. Over 900,000 native tokens were destroyed then.

Remember! Cryptocurrency units subjected to the Coin Burn process can no longer be recovered. They are irreversibly destroyed. This process is automatic and you, as the owner, have no influence on it.

It should be assumed that the coin burn phenomenon will be more and more commonly used and will gain popularity. However, there are no plans or statistics about specific numbers. Nevertheless, for traders, such currencies are a clear signal of investment opportunities, trends and finally profits

(the text comes from the private blog ZaHajsZKryptoBaluj)

Being in the world of cryptocurrencies, you have probably come across many terms that are not understandable to you. Some occur frequently and others rarely. To those that should be known, definitely add the term "COIN BURN". It is a simple and logical term and you may need to know it.

That is, "burning coins" - it is nothing else than the irretrievable removal of units of a given cryptocurrency / token. In practice, it is nothing more than reducing its total supply. Burning coins can, for example, be written in a smart contract and appear, for example, periodically to prevent too much emission of a given cryptocurrency. Limited supply allows you to keep your digital currency in check (see the term inflation), make it unique and add value. It is usually a well-thought-out and sensible mechanism described in the white paper. It has nothing to do with the loss of tokens by their owners. So worry, it's not burning your tokens kept in your wallet :)

Smoking is also beneficial for the owners of exchanges because, in addition to increasing the value of tokens, it allows for obtaining new users, i.e. exchange clients.

What are the main reasons for coin burn? - more effective consensus mechanism, this applies to coins that accept Proof-of-Burn (POB) and increasing the value of the token (the law of supply and demand).

What does burning tokens look like in practice?

  1. Each BNB owner calls the burn function, thereby letting the smart contract know that he wants to burn a certain amount of BNB units.
  2. The contract then verifies that the owner has the amount of BNB in their portfolio and that the number of units they indicated is positive, as only a positive amount can be burned.
  3. If the caller does not have enough BNB units, or if the given number is invalid (such as 0 or -5), the burn function will not be executed.
  4. However, if it has enough to carry out the incineration, the amount of BNB it indicates will be deducted from its portfolio. At this point, the total BNB supply is updated (reduced) and the indicated BNB units are burned.

Transactions related to the repurchase of native tokens are announced publicly on the blockchain network. Therefore, do not worry, we cannot physically miss this information.

However, all exchange users must be vigilant. It is good to know when such a situation will take place. It is dated that the tolens were burned for the first time in 2017. Over 900,000 native tokens were destroyed then.

Remember! Cryptocurrency units subjected to the Coin Burn process can no longer be recovered. They are irreversibly destroyed. This process is automatic and you, as the owner, have no influence on it.

It should be assumed that the coin burn phenomenon will be more and more commonly used and will gain popularity. However, there are no plans or statistics about specific numbers. Nevertheless, for traders, such currencies are a clear signal of investment opportunities, trends and finally profits

(the text comes from the private blog ZaHajsZKryptoBaluj)

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2 answers


Tamara Shir
On the ccFOUND portal, 10 percent of the tokens will be burned to maintain value. This is also anti-inflationary for me. It arouses the demand for cryptocurrency. Good financial practice.
On the ccFOUND portal, 10 percent of the tokens will be burned to maintain value. This is also anti-inflationary for me. It arouses the demand for cryptocurrency. Good financial practice.

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OpenAI BOT
What is coin burn? Being in the world of cryptocurrencies, you have probably come across many terms that are not understandable to you. Some occur often and others rarely. One term that you should definitely know is "COIN BURN". It is a simple and logical term, and knowing it can be useful to you. So, "coin burning" is nothing more than the irreversible removal of units of a specific cryptocurrency/token. In practice, it is nothing more than reducing its total supply. Coin burning can be, for example, written in a smart contract and appear cyclically to prevent an excessive emission of a specific cryptocurrency. A limited supply helps to keep the digital currency in check (see the term inflation), ensure its uniqueness, and increase its value. It is usually a well-thought-out and sensible mechanism described in the white paper. It has nothing to do with owners losing their tokens. So, no worries, it is not burning your tokens held in a wallet :) Burning is also beneficial for exchange owners because, besides increasing the value of tokens, it allows for attracting new users or customers to the exchange. What are the main reasons for coin burn? - a more effective consensus mechanism, it applies to coins that use Proof-of-Burn (POB), and increasing the token's value (supply and demand). How does token burning work in practice? Every holder of BNB units triggers the burn function, thus informing the smart contract that they want to burn a certain amount of BNB units. The contract then verifies whether the owner has the specified amount of BNB in their wallet and whether the number of units provided is positive, as only a positive amount can be burned. If the person invoking the function does not have a sufficient number of BNB units or if the specified number is incorrect (e.g., 0 or -5), the burn function will not be executed. However, if they have enough units to carry out the burning, the specified number of BNB units will be deducted from their wallet. At this point, the total supply of BNB is updated (decreased), and the specified BNB units are burned. Transactions related to repurchasing native tokens are publicly announced on the blockchain network. Therefore, rest assured, you physically cannot miss this information. However, all exchange users must be alert. It is good to know when such a situation will occur. It is estimated that the first tokens were burned in 2017. More than 900 thousand native tokens were destroyed at that time. Remember! Units of cryptocurrency subjected to the Coin Burn process cannot be recovered. They are irreversibly destroyed. This process is automatic, and as a holder, you have no control over it. It is to be expected that the phenomenon of coin burn will be increasingly used and gain popularity. However, there are no plans or statistics indicating specific numbers. Nevertheless, for traders, such coins are a clear signal regarding investment opportunities, trends, and ultimately profits (the text is taken from a private blog ZaHajsZKryptoBaluj)
What is coin burn? Being in the world of cryptocurrencies, you have probably come across many terms that are not understandable to you. Some occur often and others rarely. One term that you should definitely know is "COIN BURN". It is a simple and logical term, and knowing it can be useful to you. So, "coin burning" is nothing more than the irreversible removal of units of a specific cryptocurrency/token. In practice, it is nothing more than reducing its total supply. Coin burning can be, for example, written in a smart contract and appear cyclically to prevent an excessive emission of a specific cryptocurrency. A limited supply helps to keep the digital currency in check (see the term inflation), ensure its uniqueness, and increase its value. It is usually a well-thought-out and sensible mechanism described in the white paper. It has nothing to do with owners losing their tokens. So, no worries, it is not burning your tokens held in a wallet :) Burning is also beneficial for exchange owners because, besides increasing the value of tokens, it allows for attracting new users or customers to the exchange. What are the main reasons for coin burn? - a more effective consensus mechanism, it applies to coins that use Proof-of-Burn (POB), and increasing the token's value (supply and demand). How does token burning work in practice? Every holder of BNB units triggers the burn function, thus informing the smart contract that they want to burn a certain amount of BNB units. The contract then verifies whether the owner has the specified amount of BNB in their wallet and whether the number of units provided is positive, as only a positive amount can be burned. If the person invoking the function does not have a sufficient number of BNB units or if the specified number is incorrect (e.g., 0 or -5), the burn function will not be executed. However, if they have enough units to carry out the burning, the specified number of BNB units will be deducted from their wallet. At this point, the total supply of BNB is updated (decreased), and the specified BNB units are burned. Transactions related to repurchasing native tokens are publicly announced on the blockchain network. Therefore, rest assured, you physically cannot miss this information. However, all exchange users must be alert. It is good to know when such a situation will occur. It is estimated that the first tokens were burned in 2017. More than 900 thousand native tokens were destroyed at that time. Remember! Units of cryptocurrency subjected to the Coin Burn process cannot be recovered. They are irreversibly destroyed. This process is automatic, and as a holder, you have no control over it. It is to be expected that the phenomenon of coin burn will be increasingly used and gain popularity. However, there are no plans or statistics indicating specific numbers. Nevertheless, for traders, such coins are a clear signal regarding investment opportunities, trends, and ultimately profits (the text is taken from a private blog ZaHajsZKryptoBaluj)

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