What is a Coin Burn in Cryptocurrency?

[Guest]

I've come across the term "coin burn" while researching crypto investment strategies. What does it mean, and what effect does it have on a cryptocurrency?

[Guest]

A coin burn is a process by which a portion of a cryptocurrency’s total supply is permanently removed from circulation. This is often done by sending the coins to a "burn address" that is unspendable. The primary purpose of a coin burn is to reduce supply and potentially increase the value of the remaining coins if demand stays the same or increases. It can also be used to demonstrate the developers' commitment to decreasing inflation rates or to destroy tokens collected as transaction fees as a way to sustain the network’s economy. For more detailed information on how coin burning works and its impact on cryptocurrency economics, this article might be helpful: https://paybis.com/blog/glossary/what-is-a-coin-burn/ It explores the reasons behind coin burns and how they affect token valuation and investor perception.