Burning Tokens is the process of permanently removing tokens from circulation.
Usually performed by the development team behind a cryptocurrency asset to increase its liquidity.
There are different ways to burn tokens. For example, sending coins to a so-called “eater’s address”. Or call a function that checks whether the burner has the appropriate amount and permanently blocks these funds. The burning process can be automated — quarterly, developers can check the balance of tokens issued on crypto exchanges, and if there is an unsatisfactory trend, reduce the volume of a cryptocurrency. Only the currency that is on the balance of the burner is destroyed.