Burn
The permanent removal of tokens from circulation, typically by sending them to an inaccessible wallet address. Burning reduces supply and can increase scarcity.
Why It Matters
Token burns involve permanently removing tokens from circulation, which can stabilize or increase the remaining tokens' value. Understanding this process helps investors grasp supply dynamics and scarcity in particular cryptocurrencies.
Example
For instance, if a project announces it will burn 1 million tokens, the total supply decreases, potentially increasing the value of each remaining token due to reduced supply.
Beginner Context
For newcomers, knowing about token burns can illuminate strategies projects use to enhance value and scarcity. It's an important concept for understanding how supply and demand affect cryptocurrencies.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Hardware Wallet
A physical device designed to securely store cryptocurrency private keys offline. Popular hardware wallets include Ledger and Trezor.
Seed Phrase
A series of 12 or 24 words generated by a cryptocurrency wallet that serves as a backup to restore access to the wallet. It must be kept secure and private.
Rekt
Crypto slang for suffering a severe financial loss on a trade or investment — derived from the word "wrecked." Someone who is rekt has typically lost a large portion of their portfolio, often due to leverage or a rug pull.
USDC
USD Coin — a major US-dollar-pegged stablecoin issued by Circle. Each USDC is backed 1:1 by reserves of cash and short-term US government bonds. USDC is widely used in trading, DeFi, and payments.
ICO
Initial Coin Offering. A fundraising method where new cryptocurrency projects sell tokens to early investors to raise capital for development.