Token burn
The permanent removal of crypto tokens from usable supply, usually by sending them to an address or contract that cannot spend them.
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GlossaryA token burn permanently removes tokens from usable supply.
Imagine a project has 100 tokens in circulation and permanently destroys 5. There are now 95 usable tokens. That does not automatically make every remaining token more valuable because demand, revenue and the cost of acquiring those 5 tokens still matter.
Technically, a burn usually sends tokens to an address or contract that cannot spend them, or calls contract logic that reduces recorded supply. A project may burn tokens it already holds, or buy tokens from the market before burning them. Those two choices use different resources and can affect holders differently.
The common misunderstanding is that any burn guarantees a price increase. It does not. Size, funding, timing, market expectations and alternative uses of the money all affect the result. A discussion about a possible burn is also not the same as an approved or executed burn.