Crypto burning is a process in which cryptocurrency tokens or coins are intentionally destroyed or removed from circulation, typically through a transaction that sends them to a non-retrievable address or a smart contract that renders them unspendable.
The purpose of coin burning can vary, but it is often done to reduce the total supply of a particular cryptocurrency in circulation, which can increase the value of each remaining token.
It can also be used as a way to reward existing token holders by reducing the dilution of their holdings.
The merit of coin burning is that it can create a scarcity of tokens, leading to an increase in demand and potentially driving up the price of the remaining tokens.
Additionally, it can help to maintain the integrity of a cryptocurrency’s blockchain by removing excess or obsolete tokens.
The demerit of coin burning is that it can lead to a decrease in liquidity and potentially create volatility in the market. Additionally,
It can be seen as a form of manipulation by some investors, particularly if the coin burning is done to artificially inflate the price of a token