Token Burning Overview

Token burning permanently removes tokens from circulation by sending them to an unrecoverable address.

What is Token Burning?

Token burning:

• Permanently removes tokens from the total supply

• Cannot be reversed once executed

• Creates verifiable proof of burn on the blockchain

• Often increases the value of remaining tokens by reducing supply

Why Burn Tokens?

Projects and individuals burn tokens for various reasons:

• Supply Reduction: Decrease the total supply to potentially increase value

• Deflationary Economics: Create scarcity by systematically burning tokens

• Project Milestones: Burn tokens to mark significant achievements

• Community Initiatives: Allow community participation in burn events

Benefits of Using LockFi for Token Burns

• Transparency: All burns are recorded on-chain and visible to everyone

• Verification: Easy-to-share proof of burn for your community

• Security: Direct integration with your wallet for secure transactions

• Simplicity: User-friendly interface requires no technical knowledge

Important Considerations

• Irreversible: Token burning is permanent and cannot be undone

• Impact Analysis: Consider the economic impact before burning significant amounts