Burning of digital coins (tokens) is the process of destruction of a certain number of cryptocurrency units. Some developers burn them in a separate wallet, while others prefer special SOFTWARE or change the code by using the hard fork.
In most cases coins are simply sent to addresses that no user has access to. In traditional financial systems burning is similar to the process of a company repurchasing its own shares in order to reduce their total number and increase investors profit.
Digital fires are a frequent phenomenon. They are practiced by many developers. Ripple, Stellar, Tron and many others crypto developers use burning to withdraw their own coins from total circulation. September 2018, Tron developers switched to a team-developed system other than Ethereum. As a result, 4.92 billion coins with the ERC20 specification were lost forever. On a quarterly basis disappears 20% of BNB tokens. And this will continue until the supply will reduce by 50% of the original tokens publishing.
Whatever method developers use while they make cryptocurrency burning, the main goal of this process is always remains the same. Reducing the total circulating supply and creating a deficit are excellent ways to increase the asset’ value.
Recently, Deex Exchange completed the first stage of the Cryptomat IDO (Initial DEX Offering). Investors received a very promising token, which will soon be sold not only on Deex, but also on other trading platforms. In order to increase the demand and make Cryptomat a popular investment tool, the burning of unsold tokens was carried out.
One of the undeniable blockchain advantages is the transparency of all transactions, so any user can make sure that the burning took place. Just go to the explorer and view the data in block 41416016. That’s where the tokens were destroyed.
We will inform you about the next stage of Cryptomat IEO of this unique project. Stay in touch and follow the official news. Participation in crowdfunding campaigns on Deex Exchange is a great way to become the owner of really promosing projects that can benefit not only the entire crypto community, but also to please investors with a growing rate. Join now and participate in the current IEOs!