Post
Topic
Board Altcoin Discussion
Re: What is coin or token burning?
by
Jackl87
on 29/09/2021, 15:24:47 UTC
Coin burn results:
  The result of burning coins is that they will reduce the amount of coins from the supply.  As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned.  And as a result, the price of bnb coins is much higher now.

I am a really big fan of projects that have some kind of token burn implemented in their tokenomics. As you already said binance is great example for what happens if you have an already good project with a token that has a use case and on top of that you even have a token burn mechanism that will gradually decrease the existing supply of the token. That doesn't mean though that a token burn mechanic is automatically guaranteeing that the price of the token will rise. Just look at all those meme-coins that came out a few months ago, a lot of them had a token burn included in their tokenomics but today 99% of those projects are dead despite that.