How do you burn a crypto coins

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Token burning is the process by which a given amount of a crypto asset is permanently removed from the circulating supply in order to decrease the overall. Coin burning happens when a cryptocurrency token is intentionally sent to an unusable wallet address to remove it from circulation. The address, which is called. How Do You Burn Cryptocurrency Tokens? Tokens are burned by.

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This is usually compared to burning physical forms of money, which is why it is called burning. August 18, It operates in likeness to a stock buyback, where companies repurchase their own shares, effectively canceling them out. Wallet addresses used for burning cryptocurrency are called "burner" or "eater" addresses. We can theorize that in such circumstances an arbitrage pricing argument would suffice to explain why a crypto asset could be valued at a given price assuming the existence of the aforementioned constant and automated buyback and burn mechanism.