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  1. Home
  2. /Glossary
  3. /Token Burn
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cryptocurrency

Token Burn

Permanently removing tokens from circulation by sending them to an unreachable address.

Definition

Permanently removing tokens from circulation by sending them to an unreachable address. This reduces supply and can increase the value of remaining tokens. Ethereum burns a portion of gas fees since the London upgrade, and many projects do regular burns to create deflationary pressure.

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Related Terms

Burn

Permanently removing tokens from circulation by sending them to an unusable wallet address.

Tokenomics

The economic design of a token including supply, distribution, utility, and incentives.

Deflation

When prices across the economy decline over time, increasing money's purchasing power.

Address Poisoning

A scam where attackers send tiny transactions from addresses that look similar to ones you've interacted with, hoping you'll accidentally copy the wrong address from your transaction history.

AI x Crypto

The intersection of artificial intelligence and blockchain technology.

Airdrop

A marketing strategy where crypto projects distribute free tokens to wallet addresses.

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