Many cryptocurrency projects use the token burning mechanism to regulate their economy, reduce supply, and increase the value of the remaining tokens. Here are some popular tokens subject to burning:
1. Binance Coin (BNB)
– Burning Mechanism: Binance conducts regular BNB burns based on the number of transactions on its platform. Burning occurs every quarter until 100 million coins (about 50% of the initial supply) are burned.
– Goal: Reduce the supply of BNB to increase its value and create value for holders.
2. Ethereum (ETH)
– Burning Mechanism: The introduction of EIP-1559 (since 2021) involves burning a portion of the transaction fee with every block. This makes ETH a deflationary asset, helping to reduce inflation and increase token value.
– Goal: Control the emission of ETH and reduce inflationary pressure.
3. Shiba Inu (SHIB)
– Burning Mechanism: SHIB burning is actively used in various initiatives, including through partner websites, gaming platforms, and trading operations.
– Goal: Reduce the total supply of SHIB and support the price growth of the token.
4. Tether (USDT)
– Burning Mechanism: Tether uses burning of its tokens to ensure the alignment between issued and circulating USDT, as well as to manage liquidity on the platform.
– Goal: Support the stability and liquidity of the stablecoin.
5. SafeMoon (SAFE)
– Burning Mechanism: Every time a transaction occurs with SafeMoon, part of the tokens is automatically burned, and the other part is redistributed among holders.
– Goal: Constantly reduce the supply and encourage long-term token holding.
6. Huobi Token (HT)
– Burning Mechanism: Huobi burns HT based on the trading volume on its platform and also plans regular burns until 50% of the initial supply is destroyed.
– Goal: Increase the token’s value and encourage users to hold HT.
Conclusion
The token burning mechanism is a popular tool among cryptocurrency projects for controlling inflation, increasing asset value, and boosting trust among investors. Each project uses burning according to its own rules, but the main goal is to create market scarcity and encourage long-term growth.
