🔥 DAY 29: Token Burn. Why is destroying coins good?

In the world of traditional money, if the government prints more bills, your money is worth less (inflation). In the crypto world, many projects do the opposite: they destroy their own coins. This is called Token Burn.

❓ How is a cryptocurrency "burned"?

Obviously, fire is not used. "Burning" involves sending a certain amount of tokens to a dead address (a wallet whose key no one has and from which they can never escape). Those tokens are taken out of circulation forever.

📈 What is it for?

The main reason is deflation. By reducing the total supply of a coin:

Scarcity: If demand remains the same but there are fewer coins available, the value of each remaining coin tends to rise.

Confidence: It shows that the project team is committed to maintaining the token's value in the long term.

Reward: It is a way of indirectly "paying" holders (HODLers), as their percentage of ownership over the total network increases.

💎 The example of Binance (BNB)

Binance is famous for its "Auto-Burn" of BNB. Every quarter, Binance uses a portion of its profits to buy back and burn BNB, with the ultimate goal of eliminating 50% of the original total supply. That’s why BNB is considered by many to be such a solid asset.

🧠 Today's lesson:

Not all token burns are the same. Some projects burn coins to hide that they issued too many, while others, like BNB or Ethereum, do it as part of a robust economy. Always check why and how much is being burned.

🔥 TOMORROW: DAY 30. The grand finale! We will celebrate the month of learning and I will give you the roadmap to follow your path to financial freedom.

Did you know that BNB is burned periodically? What other coin do you know that uses this burn system? 👇

#TokenBurn #BNB #Deflation #BinanceSquare #InversionesCripto #TradingCommunity