What is Coin Burn?
Coin Burn is permanently removing the crypto coin from the circulation of the market and reduces the total supply.
Let see some example:
As Cryptocurrencies are added, these are also burned. For example Bitcoin. in the crypto market many bitcoins are locked in blockchain technology. when it is unlocked, it is added to the total supply and increases the total volume of bitcoin. then the market is going down. On the other hand, when many bitcoin are burned the market is going up and many people get profit from the market.
Let’s talk about Binance Coin …
The Binance Coin was a part of the Ethereum network, still, now 100,000,000 BNB are destroyed . the total supply is 200,000,000. overall 50% of coins are already burned.
According to trade, BNB coins are burned in a quarter.
How does it Work?
Token Burning is happened by their event.
- A Crypto holder will announce the burn function, and They want to burn some amount of coins.
- After the announce the smart contract verify his/her account wallet and the burning number of coins. and give permission to destroying the coin.
- If the holder does not have enough coin then the burning would not be executed.
If he/she has enough coin to burn his/her coin, they can destroy permanently of holding coin for forever.After destroying the coins are impossible to recover in a wallet or any other place.
How to know How many coins have been destroyed of any coin?
To know the answer to this question go to the official site of the coin and check it out for example Binance. go to Binance’s official account and you can check all lists of burning from starting to end easily.
The list of BNB coin Burn.
In a word when the coins burn the market will increase and when the coins will add to the wallet then the market is down and many people are lost.
All data are collected from Binance.
image credit Binance