Burning of cryptocurrency | Bitcointalksearch.org

zaim7413

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Quote from: Jaered on May 14, 2021, 05:04:16 PM

Its a Burn address, and any token or coin sent to that address is gone forever. That is the meaning of burning. It reduces the amount of coins in circulation thereby driving up the price

Yes, because there is no other address to burn tokens or coins in terms of reducing the supply,
so the option to burn tokens or coins can only be done for that address.

Golftech

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Quote from: zaim7413 on May 18, 2021, 05:38:32 AM

Quote from: Jaered on May 14, 2021, 05:04:16 PM

Its a Burn address, and any token or coin sent to that address is gone forever. That is the meaning of burning. It reduces the amount of coins in circulation thereby driving up the price

Yes, because there is no other address to burn tokens or coins in terms of reducing the supply,
so the option to burn tokens or coins can only be done for that address.

If the project is really performing and that's really good in terms of value, reducing the volume will simply

brings up the price inside the market, though for sure the sentiments always depends from how the people

will like to see and support the project, usages plus burning of tokens have a major impacts to the entire

value of the coin,.

no-ice-please

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Quote from: Gorosden on May 16, 2021, 03:50:05 AM

Quote from: akhatti on May 02, 2021, 10:35:46 AM

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

My advice is don't invest on crypto projects with only burning feature because that's all majority of those projects has to offer, burning off max supply of a coin or token doesn't mean the projects will have more value, burning of tokens isn't good use case

If it is the only feature that might be a little bit poor and short of what we should expect from a good cryptocurrency. It is nice to have though if you have a burning option or feature built into the protocol.

Gorosden

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Quote from: akhatti on May 02, 2021, 10:35:46 AM

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

My advice is don't invest on crypto projects with only burning feature because that's all majority of those projects has to offer, burning off max supply of a coin or token doesn't mean the projects will have more value, burning of tokens isn't good use case

Woodie

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Quote from: akhatti on May 02, 2021, 10:35:46 AM

I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.

In layman's terms this means destroying some coins from the total supply with the intention to stimulate demand to go up. This act just boarders around the laws of supply and demand, the lower the supply the more demand we have and the higher the supply the likely hood of low demand.

Quote from: akhatti on May 02, 2021, 10:35:46 AM

And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

Didn't take a look but crypto addresses are not like a house number , these can belong to anyone unless the address has been posted in public to make the connection.

Benefactor

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I think coin consuming is a framework performed by the coin creator where they eliminate or consume a portion of their coins which points as well as raising the cost of coins on the grounds that the coins are turning out to be progressively scant is additionally used to keep away from the coin to keep away from swelling. Regularly, most occasions this is utilized to drive publicity which thus drives up the cost yet these days it doesn't do much with the exception of if the coin or token is from a respectable stage.

bitkanu

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Quote from: ?? on ??

The address that is used to burn tokens, as far as I know, is created under the terms of the contract in any of the networks. It is systematically spelled out initially in the code of any of the coins supporting tokens and their burning

I don't think so. The developers will always try to send the coins that already minted to the default address. no one owned the key of the default address and it will be gone forever. I rarely seen that the developers were putting the function for the token to did self burning method. I have never heard this before.

no-ice-please

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Quote from: ?? on ??

The address that is used to burn tokens, as far as I know, is created under the terms of the contract in any of the networks. It is systematically spelled out initially in the code of any of the coins supporting tokens and their burning

You can check out n detail how to produce invalid public keys (burn addresses) here: https://bitcoin.stackexchange.com/questions/1851/how-to-generate-a-valid-bitcoin-address-for-destroying-bitcoins

That explains very well how burn addresses are generated and why it is important to have invalid public keys that others can verify no valid private key exists for.

BuNga_cute

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Quote from: xiboothrezi on May 14, 2021, 05:34:25 PM

Quote from: Jackl87 on May 14, 2021, 05:01:42 PM

--- So normally it is a good thing if a project has a burning mechanism included in his tokenomics as it is usually very benifitial for every long time holder of that coin.

In short, token burning aims to reduce the number of tokens circulating in the market. some are done at once, some are done periodically, such as BNB.
Either way, what is clear is that token burning is used to control prices at a high level, reduce inflation, and provide confidence and transparency to investors. back to economic principles, if supply is less than demand then prices will tend to rise.

There are so many benefits that can be obtained from burning cryptocurrency, which is most visible after burning occurs, then the price of
the coins increases. And that's only natural, because the number of supply decreases, and the increased demand is what makes the coin price
go up after burning. Therefore, investors will usually buy coins before burning occurs, because after burning the coins price will skyrocket immediately.
That's what happened to BNB, now the price is proven to continue to rise after the burning at BNB occurred.

xiboothrezi

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Quote from: Jackl87 on May 14, 2021, 05:01:42 PM

--- So normally it is a good thing if a project has a burning mechanism included in his tokenomics as it is usually very benifitial for every long time holder of that coin.

In short, token burning aims to reduce the number of tokens circulating in the market. some are done at once, some are done periodically, such as BNB.
Either way, what is clear is that token burning is used to control prices at a high level, reduce inflation, and provide confidence and transparency to investors. back to economic principles, if supply is less than demand then prices will tend to rise.

Jaered

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Its a Burn address, and any token or coin sent to that address is gone forever. That is the meaning of burning. It reduces the amount of coins in circulation thereby driving up the price

Jackl87

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Quote from: akhatti on May 02, 2021, 10:35:46 AM

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

Burning coins means that the coins or tokens will be sent to a burn address like the one you have metioned in your post. The important thing is that no one has the private key to this addresses which means once the tokens are sent to one of those addresses then the tokens are destroyed or "burned" and there is no way to ever get them back which decreases the circulating supply of the token and therefore increases the value of the remaining tokens. So normally it is a good thing if a project has a burning mechanism included in his tokenomics as it is usually very benifitial for every long time holder of that coin.

no-ice-please

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Quote from: Atang Sulaeman on May 12, 2021, 02:18:02 AM

burning coins or reducing the number of coins in circulation, the fewer coins there will increase the value of these coins. thus the coin price remains stable with a reduced supply.

If you reduce the supply it can also give a positive signal to the market and even increase the price. It also depends on how the burning happens because if the tokens ar bought back from the market it also increases the price.

Atang Sulaeman

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burning coins or reducing the number of coins in circulation, the fewer coins there will increase the value of these coins. thus the coin price remains stable with a reduced supply.

ANKIT007

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Coin burn-in cryptocurrencies mean sending some of the coins of a native cryptocurrency or some other currency to a public address from which those particular coins can never be spent because the private keys of such an address are unobtainable.

no-ice-please

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Quote from: sapnu on May 07, 2021, 10:26:40 AM

The statement "burning of cryptocurrency" means stabilizing a certain coin in order to avoid too much inflation and increase the demand resulting to a higher value. It is usually done by the coin maker wherein they will send it to a default address and as it gets transacted to that address, the coins will automatically burn or cease to exist. It is more likely reducing the total coins being exclusive to investors or traders which will more likely result into a better outcome as time passes by. Since we can also apply the law of demand in supply here in crypto, as the supply falls down there will be higher chance that the demand will increase.

The risk is that any coin operating with crptocurrency burns is more prone to be declared a security unless the network is sufficiently big like ETH. Becoming qualified as a security can cause lots of problems to the teams behind them as well as to token or coin holders.

sapnu

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The statement "burning of cryptocurrency" means stabilizing a certain coin in order to avoid too much inflation and increase the demand resulting to a higher value. It is usually done by the coin maker wherein they will send it to a default address and as it gets transacted to that address, the coins will automatically burn or cease to exist. It is more likely reducing the total coins being exclusive to investors or traders which will more likely result into a better outcome as time passes by. Since we can also apply the law of demand in supply here in crypto, as the supply falls down there will be higher chance that the demand will increase.

jinxing

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everyone here believes that coin burning is done so that coins can be valuable because it reduces the amount of available supply, but not all developers can burn the coins they have launched because there is no point in burning coins by a failed project, especially if the coins are that they have is simply junk coins which have no value at all

lalabotax

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Generally, if a coin experienxea burning token, the price will be higher after burning
Moreover they know that the supply is decreasing. So the chance together will tell us about all increas probablity for the price of the token or coin itself

NorvsGanda

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Newbie question. Those tokens that burned by the team has a market value right? So if they will burned those tokens, are they also burned their money? Because those tokens has value and included on the over-all coin circulating supply. So how's the team get their benefits from burning their tokens?

Godwinpaul

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When I see a project developer talk about burning of the cryptocurrency, I understand he's about to reduce the total number of tokens that was created and that reduces the amount in circulation. Most times cryptocurrency are burnt Inorder to increase the value of the tokens in circulation as the value is determined by the market capitalisation divided by the amount in circulation.

Cherylstar86

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Quote from: akhatti on May 02, 2021, 10:35:46 AM

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

Certainly that address have been trashed and not active anymore due to token burning, and basically it happens when token supply was reduced. Though the developer of a cryptocurrency project did some token supply reduction, that doesn't you're about to take profit on their project. Some tokens after burning has no further progress, and worst they've been left away by their supports, then their token became shitcoins in the end.

Pelana vreo

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Quote from: akhatti on May 02, 2021, 10:35:46 AM

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

It looks like the trend of burning coins to reduce the supply amount continues to be carried out by developers to increase the price of tokens in circulation, there are a lot of default wallet addresses I've seen like (0x .... 1), (0x .... 2) nobody has that private key or wallet and usually coins are burned for other reasons for example a developer will burn a token that doesn't sold out when the ICO was run

CaVO32

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Quote from: judas on May 06, 2021, 05:56:28 PM

Burning some cryptos (e.g. BNB) means that the supply will decrease which is limited normally. And after it, that cryptocurrency will be much more valuable as its supply will be lower than before. And the price will be likely to increase too.

This may be true to BNB but for other alts, even if they have burning program, they won't go that far. It needs valid reason why it will become a valuable one, not only because of this burning activity. If the team is actively developing their project and looking for use cases while doing this burning activity, then, the increase of value may happen. But if not, burning will only be futile.

judas

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Burning some cryptos (e.g. BNB) means that the supply will decrease which is limited normally. And after it, that cryptocurrency will be much more valuable as its supply will be lower than before. And the price will be likely to increase too.

kram31

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Burning a coins the first thing will come up into the majority people here in the forum is that the coins will definitely increase its
price value in the market sooner or later. But not all coins burning I think increases their price, because I've seen this several times here
I just forgot what coin is that, just all I know in accordance to what I had mentioned.

pelumi20

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The burning of tokens is simply a deflationary model in which the project team sends a certain percentage of their tokens to that address (0x000000000000000000000000000000000000) in order to reduce the total supply. Reduction of the total supply will help create scarcity for the token and thereby increase the demand for it. And no, the address belongs to nobody.

motun01

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Based on the laws of demand and supply when the supply of a particular asset or commodity reduces, with a stable or increased demand, then the value of the asset or commodity increases.
Similarly with cryptocurrencies especially Altcoins, token burns are done in order to decrease the total circulating supply of the cryptocurrency in order to increase scarcity which will increase the value of the cryptocurrency.

coinswebid

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Quote from: akhatti on May 02, 2021, 10:35:46 AM

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

burning events is good for any altcoins, because with burning events the supply will decrease mate, usually when the supply decrease the demands will increase
and i believe no one can access this 0x000...dead wallet address

paxmao

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Nope, that address does not belong to anyone and as you own thread title suggests, its purpose is to send the tokens to a place in hell were they burn for eternity never to be seen or moved again. So, yep, that´s just burnt tokens or even tokens that people got angry at and sent there Wink

sometimes this happens with tokens that are airdropped to any address and it basically serves as a trash can.

Dexion

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Quote from: Myleschetty on May 05, 2021, 03:28:24 PM

Burning of cryptocurrency is the strategy used to make a certain scarce in the market and it also reduces the total supply of coin and total circulating supply of coins while increase the chance of the coin gaining more increase in price but the token thats burned are sent to address will never be use by anyone.

But this burning also has a risk, if the market demand does not increase, while the circulating stock decreases, this will cause the coin to sink.

Myleschetty

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Quote from: akhatti on May 02, 2021, 10:35:46 AM

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

Burning of cryptocurrency is the strategy used to make a certain scarce in the market and it also reduces the total supply of coin and total circulating supply of coins while increase the chance of the coin gaining more increase in price but the token thats burned are sent to address will never be use by anyone.

thesmallgod

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When smart contract is being created for a particular token a feature is added that allow part of the token to be burnt by simply sending token to a smart contract address. when token get burnt by sending to that address, it can never be retrieved and no one have access to such token even though you can check the address or the transaction

Dexion

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When a token is sent to that address, the token will be stored there and cannot be retrieved by anyone, and that is what is known as burning, this causes a reduced supply in the market, if the demand for these tokens increases while the supply decreases it will cause an increase. price on the token, and it has done a lot.

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Quote from: dihari on May 03, 2021, 08:18:15 AM

Just like what title you wrote in this topic, it is a burning address where no one own that address and no one have access to it. It used as a method to reduce the number of tokens which they believe can help the price of token it self.

It is not just reducing the number of tokens, but if we think more about burning, we can say it is a buyback too.
When you want to burn the coin, you must buy in the market and collect them to burn.
This makes the coin price increase, because the buyback and burn.

blockman

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Quote from: tippytoes on May 02, 2021, 04:49:24 PM

Quote from: blockman on May 02, 2021, 01:26:45 PM

Burning means whenever there are tokens sent to that address that isn't owned by anyone, that will be stored there forever and can no longer be retrieved.
It lessens the supply of that token which makes it more valuable in due time and makes the demand higher based on the law of supply and demand.

But it will only be valuable if the dev team of the token is also doing their developments on the project. Burning alone is not an assurance that a token will increase its value in the market. But if it is accompanied by active development from the dev's side, there's a chance that the token will gain better value in the market. So don't be attracted by seeing that there is burning program for the token but also look if the project has good use case in the market. Without its actual application, would be hard for the token to get valuable if it is relying with the burn program only.

The development is already there. As obvious with popular coins like BNB, they are in the continuous development of their token. Burning it is just part of the measure and probably also part of the roadmap that they have before which going to be keep on happening as they proceed to follow what they've started.

dihari

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Just like what title you wrote in this topic, it is a burning address where no one own that address and no one have access to it. It used as a method to reduce the number of tokens which they believe can help the price of token it self.

no-ice-please

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Quote from: Gozie51 on May 03, 2021, 07:40:14 AM

Quote from: blockman on May 02, 2021, 01:26:45 PM

It lessens the supply of that token which makes it more valuable in due time and makes the demand higher based on the law of supply and demand.

This is one of the simplest way to understand what burning is. Burning is just as you know it and the purpose is to create value around the project. Usually when a coin is burnt out, it means some of the coins not in use and can't be recovered and that automatically reduces the maximum supply of the coin and that creates limitation in it. This action creates value on the project, binance had such and you can see where the price is today.

There are so many kind of benefit with burning of project.

The investors see it as the team is active and trying to see how to be better appreciated in the market and when the burn happens, it attracts more investors because of that (active team)

When burn happens, most times the team creates more awareness and technology on the project increase.

It brings partnership. Most investors like to put money where there are good partnership. Like cartesi in instance is having lots of partnership around it which is helping the coin growth.

When the maximum supply of a coin is reduced, it creates new kind of investors from partnership to traders and institutional investors.

One way to understand burning is to compare it to buyback programs by real world companies like Apple although there are different burning mechanisms in crypto. You can build the burn mechanism into the transaction fee, or when a coin is used you can manually or automatically burn it via the protocol. It creates deflation and controls the supply in a way that is beneficial to the holders of the asset. Coins get spend to an address accessible for nobody, hence they are destroyed and removed from the circulating/total supply.

Gozie51

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Quote from: blockman on May 02, 2021, 01:26:45 PM

It lessens the supply of that token which makes it more valuable in due time and makes the demand higher based on the law of supply and demand.

This is one of the simplest way to understand what burning is. Burning is just as you know it and the purpose is to create value around the project. Usually when a coin is burnt out, it means some of the coins not in use and can't be recovered and that automatically reduces the maximum supply of the coin and that creates limitation in it. This action creates value on the project, binance had such and you can see where the price is today.

There are so many kind of benefit with burning of project.

The investors see it as the team is active and trying to see how to be better appreciated in the market and when the burn happens, it attracts more investors because of that (active team)

When burn happens, most times the team creates more awareness and technology on the project increase.

It brings partnership. Most investors like to put money where there are good partnership. Like cartesi in instance is having lots of partnership around it which is helping the coin growth.

When the maximum supply of a coin is reduced, it creates new kind of investors from partnership to traders and institutional investors.

VanDeinsberg12

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By burning coin basically you just throw it to an address that's belong to no one and one of example is the address you mentioned. You can't edit the total supply etc because the whole blockchain isn't yours to own or any group but all the nodes and users therefore the only convenient way to dispose of the coin that you're supposed to burn is to do just that.
I've seen some erc20 tokens also burning their tokens by just sending it to some obscure address unlike the address you mentioned or different but the most important thing is that the coin or token sent to that address is permanently unretrievable.

slashz9

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burning coins aims to reduce the supply and of course if viewed normally then the price of coins should increase because the number has decreased forever and cannot be contested, regarding the 0x00000 address you mean that is a dead address or a disposal place for burn coins, so there is nothing have access to it and the value of coins burned depends on how many projects burn coins.

Em00n01

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0x000000000000000000000000000000000000dead
This address is not accessible to anyone. The purpose of creation of this address is token burning. Whenever a token sent there no one can get back those token. It's locked/burned forever.

the rise

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it is the address of the ethereum smart contract, the address it has no owner, any defection will be sent to that address, is a condition of the eth platform itself, the article token is no longer usable, Burning the article token eliminates some total supply causing the supply to get thinner and scarce.

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Quote from: shinratensei_ on May 02, 2021, 10:52:03 AM

That address does not belong to someone or a human. That address is the default address that is created for the purpose to burn the token.
None can access the address even the developer of the platform can't do that.
Any token that already sent to the default address can be considered already burned. You should not feel worried about that. There's no party that can have access to the default address.

Nor the Alien's Grin

Yeah, 0xdEaD is an address that doesn't belong to anyone because it is almost impossible to get the private key with 0xdEaD address.
Actually, burn address can be any address that doesn't belong to anyone. To prove it doesn't owned by anyone, we use 0xdEaD or 0x...0000.
But some smart contract have burn function, which doesn't require it to transfer to burn address, it use function : balances[owner] -= burnAmount

tippytoes

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Quote from: blockman on May 02, 2021, 01:26:45 PM

Burning means whenever there are tokens sent to that address that isn't owned by anyone, that will be stored there forever and can no longer be retrieved.
It lessens the supply of that token which makes it more valuable in due time and makes the demand higher based on the law of supply and demand.

But it will only be valuable if the dev team of the token is also doing their developments on the project. Burning alone is not an assurance that a token will increase its value in the market. But if it is accompanied by active development from the dev's side, there's a chance that the token will gain better value in the market. So don't be attracted by seeing that there is burning program for the token but also look if the project has good use case in the market. Without its actual application, would be hard for the token to get valuable if it is relying with the burn program only.

Mtaiwo

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The burning of cryptocurrency is to reduce the total level of supply to general public and also serve as a means of influencing the value of token, because bigger purchasing power will be chasing few token thereby lead to increase in the value.

Chuky92

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Burning of cryptocurrencies or token/coin burn as it is mostly called is a process whereby a certain amount of the token or coin of the platform is removed from the total supply of that coin or token in question thus reducing the supply. Normally, most times this is used to drive hype which in turn drives up the price but nowadays it doesn't do much except if the coin or token is from a reputable platform.
About the address where the coin or token is sent to, the address belongs to no one, meaning any cryptocurrency sent there is lost forever. Since it belongs to no one, no one have access to it, because if it's accessible then it defeats the purpose of the coin/token burn.

blockman

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Burning means whenever there are tokens sent to that address that isn't owned by anyone, that will be stored there forever and can no longer be retrieved.
It lessens the supply of that token which makes it more valuable in due time and makes the demand higher based on the law of supply and demand.

Alanaz

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Coin burning is a system performed by the coin maker in which they remove or burn some of their coins which aims in addition to raising the price of coins because the coins are becoming increasingly scarce is also used to avoid the coin to avoid inflation.
An example that has just happened is bnb which a few weeks ago burned its coins.
can be seen after they burn some of their coins bnb immediately sped up its price because their coins decreased automatically their price went up

shinratensei_

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That address does not belong to someone or a human. That address is the default address that is created for the purpose to burn the token.
None can access the address even the developer of the platform can't do that.
Any token that already sent to the default address can be considered already burned. You should not feel worried about that. There's no party that can have access to the default address.

akhatti

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Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

Topic: Burning of cryptocurrency (Read 501 times)