The process of token burning is not complicated at all, just a little bit of reading about it and you can easily understand everything. The exchange burns the previously planned number of tokens every now and then. So nothing happens by chance. It depends mainly on what profits the exchange has from turnover. Thanks to this, the cryptocurrencies become more valuable and tempt potential buyers.

The exchange has the task of buying back at least 20 percent of the domestic tokens every quarter and destroying them. This is done until 50 percent of the total supply is returned to the exchange. As you can see, these are quite simple actions if someone has been moving in the crypto market for some time and is studying the subject.

Transactions related to buying back native tokens are publicly announced on the blockchain, so you can be sure that you will not miss such information. The clients of the exchange must therefore be vigilant to know when this will happen. The first time tokens were burned in 2017. Over 900,000 native tokens were destroyed then.

Some people do not fully understand the whole process. However, burning tokens has its advantages, especially for stock exchanges, because they can do so:

attract new clients,
increase the value of tokens.

Token burning - how does it works?