Burn
A token burn permanently removes tokens from spendable supply according to the token or protocol's rules.
✦ Key Insight
Burns can change supply growth, fee economics, and token incentives. They are often marketed as automatically bullish, but a burn matters only in context, including issuance, token utility, demand, and the scale of the burn.
✕ Common Misconceptions
Sending tokens to an inaccessible-looking address is not always equivalent to a protocol-enforced burn. Verify the contract logic, supply data, and whether the destination can truly never spend the tokens.
Detailed Explanation
In Practice
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Tokenomics
Tokenomics describes how a crypto token's supply, distribution, incentives, and utility are designed to influence how the token functions over time.
Total Supply
All tokens that currently exist, including locked ones, minus any that have been burned.
Emission schedule
An emission schedule defines how and when new or previously reserved tokens are introduced into circulation.
Gas Fee
A gas fee is the network fee paid for computation and transaction execution on blockchains that use a gas-based fee model.