Recently, many projects have announced the burning of coins, but not everyone understands what this means.
This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.
Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.
The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?
I think the solution NEAR protocol is doing is the best option, burning tokens like what Ethereum is doing with gas fees is the second best option. NEAR gives gas fees to the DApp developer. This helps pay for server costs on platforms like Ref Finance and Mintbase.