Coin burns = protocol nuking its own supply forever đ„
Why protocols do this:
- Shrink circulating supply â basic supply/demand math
- Combat inflation (especially for high-emission tokens)
- Reward long-term holders by making their bags scarcer
It's pure tokenomics warfare. Less tokens = more value per token (in theory).
Some burns are programmatic (like $BNB auto-burn), others are one-off events to pump sentiment.
Not always bullish though. If the burn doesn't match actual demand or utility, it's just theater. Watch the mechanics, not just the headlines.
Why protocols do this:
- Shrink circulating supply â basic supply/demand math
- Combat inflation (especially for high-emission tokens)
- Reward long-term holders by making their bags scarcer
It's pure tokenomics warfare. Less tokens = more value per token (in theory).
Some burns are programmatic (like $BNB auto-burn), others are one-off events to pump sentiment.
Not always bullish though. If the burn doesn't match actual demand or utility, it's just theater. Watch the mechanics, not just the headlines.
