What is crypto burn?

What Is Crypto Burn?

Burning crypto means sending coins or tokens to an address that no one can use (e.g. one with no known private key, or a contract that destroys them). Those units are permanently removed from circulation. Burns reduce supply and can be used to make a token more scarce or to offset new issuance.

How It Is Done

Some protocols burn a share of fees (e.g. Ethereum burns part of gas fees). Some projects do one-time or periodic burns. Proof-of-work chains do not typically "burn" in the same way; they just stop creating new coins at the cap. Burns are visible on the blockchain.

Does It Raise Price?

Reducing supply can support price if demand stays the same, but it is not automatic. Many factors move price. Be wary of projects that promote burns as a guarantee of gains. In India, buying or selling burned or unburned tokens is subject to the same tax rules.