Bitcoin Forum

Hi,
What happens with coin burning?  Im guessing it will decrease the total available but not sure

I read this could be happening with TRX (Tronix)

Could this push its value up?

yes it decreases the amount of coins, if the team does not have some hidden code that can retreive the coins from the "burn address" ...

usually used after ICO when people did not buy all the coins

Yes, the dev burn the coin to decrease the total  supply of the coin and burning the token can push the value up, it is a nice move from the dev to burn the coin especially the coin in their possesion as sometimes people don't want to buy something because the supply is too large.

Yes.. its beneficial...but have different aspects too...

Thanks all

Hodling TRX, it looks promising and is still cheap

coin burn is a coin that is not sold will be eliminated, I prefer to invest or follow the ICO using coin burn system, because surely the possibility of coin prices will rise and rise very high from the initial price of the coin is made.

Coin burning should not be interpreted literally as that is not what its being discussed. In the case of burning just like when a company is raising an IPO and its under subscribed, its the function of the underwriter of such IPO to augment for the balance but in the case of ICO, there is no room for that happening so the remaining balance is cancelled so that the only coins available are those that have been fully paid for and would enjoy the distribution of profit in case of any.

It will decrease the supply for sure because unsold token will be burned.
If the supply decrease then it lead the price of that token increase if the demand increase.

By burning they will decrease the number of coins in supply. This can drive the price up.

the coin will just stay on the burned address and the developers will never ever touch the coin in that address its also good to see coins burned because it increases the value of the coin.

Now many people say that all the coins that will not be sold during ICO will be burned. But in half the cases this is a fraud. There is a second stage of sales, then the continuation of the third stage of sales because the developers are trying to sell everything they have. Those companies that really block part of the coins, which remained unclaimed, well done. Less number of coins - more for one unit.

imagine you have 100 tokens, you only sell or circulate 90, what do you do with the other 10?  the burn essentially removed them, kills them off. This makes all active tokens and more valuable as there is less of them etc. Sometimes you might find instead of a burn they are discounted instead but it's down to each company.

Coin burning will definitely reduce the number of coin in supply and it will also affect the investors holding in quantity but will increase the value of the coin, the investors holding will profit from burning. If this is done with sic, it will be better.

The important thing to identify is if the coin burn will be from the total supply or circulating supply, if its from the circulating supply it should in theory have a positive impact on the price as there will be less coins/tokens in circulation.

I'm a Newbie? Word Coin Burn made me worry  :( . Any Idea?

It reduces to supply usually through buying back, increased scarcity with higher price but those token generally doesn't impact much yes their price would go up and would eventually downfall to the next burn or simply stop its movement. Good strategy to reward those perserving their values but unfortunately this scheme violate some of the exchange rules like Bittrex you couldn't find coins that burn.

I have read in one of the campaign sites about coin burning.The excess coins for that campaign that were not used are going to get burned.Why? It gets into my mind of why will they burn the coins instead ogf just giving it as a a bonus to the participating team. I am also wondering why will they burn it when infact it can still be use maybe in other projects of campaigns. What will happened anyway if they will not burn it?Will it create inflation such as in real money economics?

Burning of coin happens when the project doesn't reach the maximum token supply for crowdfunding.. Less coin with higher demand makes the price rise ofc.

Yes that is exactly what it means less supply and the value will go up but generally it will be priced it before the burn.

Yes you should worry if you haven't bought TRX yet. Price is getting higher steadily every day, I suggest you to buy it now.  Profit is guaranteed if you are patience, especially after the coin burn. Right now it's around 800 sats, but it won't be like that for long! My prediction is TRX will be around 1500 satoshis in less than 1 month.

However, it is not make sense if it will be zero demand for these coins. Don't you think so?

Coin burn happens after ICO when the total coin supplied is not bought up. So the coins are burned to reduce the coins available.
This in turn has a positive effect on the coin as it tends to appreciate in value when the quantity in circulation is notuch.

This is the process in which some supply of the coins will be gone and the remaining coins will pump. That is the probable thing that will happen. Right now, trx is about .28 usd probably, after the burn huge pump.

This mechanism is envisaged in many projects. It's very profitable even for the founders, because commonly they have pretty huge amount of tokens.

That's exactly what you are thinking. Burning or destroying the rest of the coins that are left unsold during the crowdfunding is a best way of pushing the market price of a digital currency. The moment you burn or destroy it will make its supply less and and if the demand continues over the short supply, its market price will also rise drastically.

To my understanding, that's not how a coin burn works. If the market cap is 1 mil, and there are 1 mil coins, that means each coin is worth $1. If you burn 33% of the coins, you then have 666,666~ coins worth $1 mil. Each coin is now worth $1.50~. I don't think it's your coins that get burned, but that's the part I'm not sure about. Anyone feel free to correct me.

it decreases the total supply of coins/token so the supply will become limited because no new coin/token will be created. that the purpose of coin burning.
sometimes it makes the coin value pump. just sometimes.

In general coin burn is very nice thing because it decreases total coin supply. Basically your coins become more rare, it pushes price to upper levels. That's it. Easiest way to tell.

Do all the burned coins are owned by the devs? or some coins owned by someone will also be burned?

Coin Burn its actually good in every ICO there's a lot of opportunity that the coin will go even higher because of the decrease of supply

Yes it is going to pump its price if we are talking to supply and demand law,coin burn occurs normally in ICOs if the ICOs didnt sold all of its tokens,

Coinburning is when coins are sent to the wallet from which nobody owns private keys. Thus the supply decreases. When the supply decreases you get increase in price. But this is the case if demand is higher than supply and holders wish to get premium.

Coin burn means burning out the excessive amount of tokens which left unsold during the crowdsale.So if some coins were burned it reduces the total amount which means the demand also increases.But many ICO not even to reach its soft cap and will drop their project.So if it is a good project then all of its token will be soldout.

Yes it would push the value up as the available supply decreases.

Here's an excerpt that I have found regarding the fundamentals of coin burn :

Coin burn, otherwise known as proof of burn works in a simple and easily understandable manner. Coin miners send coins to a nonspendable address aka an eater address, effectively "burning" them. Coins cannot be accessed or spent again once they have been burned. Burned coins are recorded on the blockchain, and because of this, there is enough evidence that the coins cannot be utilized again.

The idea behind this whole concept is that coin burn signifies a user's willingness to make losses in the short term while he is expecting more investments in the future.

Users are rewarded over a long time through a mechanism that is put in place for proof of burn. The more coins that a user burns, the bigger the chance that he will have to mine the next block.

Coin burn (proof of burn) can be implemented in different unique ways; For example, the coin burned may be that of the user's native currency or that of an alternative currency. Your stake takes a downward dive over time when you burn coins. The urge to maintain a good odd of being selected for mining the next block is enough motivation to make you burn more coins over time.

Advantages of coin burn

1. It is quite a valid argument that a proof of burn protocol encourages a long-term involvement in a project because prices will gain a greater level of stability since there is a greater percentage of investors willing to invest in the long term.

2. Proof of burn encourages the fair distribution of cryptocurrency in a decentralized manner. This is contrasting to the proof of works methodology that is used in the likes of bitcoin, where we have seen the centralization of mining.

3. Proof of burn is an excellent way of seeding new currencies.

4. Coin Burn ensures fair play if the tokens or coins initially allocated for an ICO is not completely sold. By sending those coin to an unspendable public address, it makes sure that the company does not just have an unfair amount of surplus token which they can sell at an appreciated price when the coins hit the exchange. Basically free money for them.

Source: https://cryptoverze.com/coin-burn/

Well, of course. The fewer coins, the higher their price. Therefore, many coins are burned to make remained  more expensive. So sometimes do with many things in life)

The exchange conducts coin burn every fiscal quarter. Currently, they are ready for the fourth quarter coin burn which involves around $32.7 million BNB.

https://coinpedia.org/information/what-future-of-blockchain/

Burning a coin is the transfer of all non-distributive and non-purchased coins to a certain zero purse. This reduces the share of available coins.
This has a positive effect on the coin,

You bumped this 6 months old thread, congratulations  :D.
Burning is the way how to increase the price of the token/coin. It is because you reduce supply but the market cap is same and also a lot of hype comming everytime when some coin announce the burning ;).

I like coins that remove coins from transactions. The price goes up.

Many exchanges, such as Binance, Kucoin and others practice coin burning. It led to increase value of ramaining coins and exchange rate

Projects usually burn their unsold tokens . Some projects are buying back their tokens from profit
and burning them. Doing this to reduce the supply and with less coins the price should rise.

Hi guys, in my opinion, I think that every token did not sell out should be burned in order to a good price! So burn token is reasonable!

TRX is still rising! What's everyone's prediction for the price in coming days/weeks?

Yes it is. The total supply are reduced by the project team. It reflect the supply and demand chain and probably be having a considerable effect on price.

In the coin burning event, the value of the coin always increases. There was a coin called emc2 in the bull market in December 2017 and I can say that it was burned for the first time. After the news of the coin burning, emc2 gained serious values.

Devs usually burn coins in other to decrease and supply and make it scarce, coin burning will help decrease the total supply  of a particular coin and in turn this helps to add more value to the coin, burning of tokens are common with new projects nowadays, it's like a added feature for hype, but sometimes even after burning this coins, the coins still doesn't add any significant value, it will still be at a low price, for now the only coin I know this burning of coins hype is working out for is BNB and people are really buying into it.

If it continues to increase like now, then the TRX token will reach ATH again in the near future, and in general the TRX token is a very good token to hold regardless of its low price, but its potential is always visible in the market.

In smart contract mechanism, the devs are following some procedure to call it burning as they cannot recover those coins after the process of burning hence circulating supply will get reduced which ultimately will lead to higher demands hence we can assume prices to get pumped.

By the times of 2015, I have noticed people were too curious on burning bitcoin as well. They shared some unique addy and for which there is no privatekey is available (I have not checked how true that is) and people were sending bitcoins to that addy for burning to make bitcoin prices to increase.

This method is used to reduce the supply of existing coins by buying them back, by increasing the scarcity and high prices will increase the price but are temporary, at least will temporarily hinder their movement. This strategy is good for increasing the value of a coin but you will find some coins will burn afterwards.

Regarding whether Throne coins will light up, I have never seen such information anywhere. But that would really increase the value of the coin in the cryptocurrency market. For example, the Ethereum team also announced that when the Ethereum 2.0 upgrade is completed and the transition to POS, part of the transaction fees will be ignited. This fact will in any case increase the shortage of Ethereum in the market and thus turn Ethereum into a deflationary asset.

Coin burning is just one deflationary measure that imitates scarcity. You need to check whether inflationary measures outcompete deflationary measures.

But tokens are coming up with fixed supply which means there cannot be no more such tokens could be printed; so burning process will lead to scarcity without any doubts. But, you can be right as for the coins which are having mining reward mechanism also going for burning processes. In that kind of situations, we must need to take care of burning is leading to any significant reduction on circulating supply or not. If there is no reduction then there will be no point of going for burning process.

I'd say no, because your coins will not be burned. Usually stolen, hacked, stuck coins are burned, so you as an individual investor don't get affected by it.

It can increase the value of your coins if there's a limited supply but it will depend on the number of burned coins vs total supply. If they burn 0.5% of the supply don't expect a big pump out of it.

with coin burn, usually the price of coin can increase, because the total supply of coin is decreasing, but it also depends on coin, so if coin has a function, then of course coin burn will have a positive impact on the price, because the price will definitely increase when a burn occurs, but if coin doesn't have a function, then in my opinion coin burn will not affect for the price of coin to increase.

if there are usages then the demands of the coin will increase and supply and demand will applied, the higher the demands the
better in terms of value, if there's burning events that will take place and the project is really being used, it will gain a big impact
bringing the coin being valuable.

No effects if there's no supply and demand meaning to say, if there's nothing after burning volumes of the tokens, there's no reflections
either no real usages or there are no buyers to support the coin.

Coins Can not be created or destroyed but can be transformed from one form to another.... Actually i believe the smartest folks out there don't burn their coins
This space is more deep than ico shit

Yes, burning coins generates scarcity. But this process is not sufficient to affect the price of the currency if there is no real demand and supply for the project.

it takes many aspects to increase prices, strong market confidence, tangible and functional products, that's what can drive price increases. token burning can reduce supply, which means scarcity will appear, if the demand is higher than the supply, the price will increase, like the law of economics.

tronix? I just heard about it. if the project is strong and market support is good then token burning can have a positive impact

You need some sort of mechanism to keep the blockchain going, also knows as proof of "whatever". Fixed supply without any reward is hard to realize as it lacks important elements for the vital incentive structure within the network.

the function of burning coins besides breaking down the total supply of coins can also be a signal for investors to immediately join in there and see the price will increase. but these increases cannot be instantaneous through various stages in the market for prices to actually increase significantly.

This method has been done a lot on other coins, by reducing the existing supply it is expected to pump up the value of the remaining coins in circulation, this is a good step to stabilize the market, because of the scarcity of coins, the value increases it certainly applies whether it's the crypto market or the formal market though.

That is right, but for some coins the burning mechanisms have been way too aggressive. You still want the coin to have certain functionalities and to serve the economics in the network well. Having too much deflation can be as harmful as having too much inflation. In other words, it is not a good thing under any and all circumstances.

In my opinion, burning coins can help stabilize the coin value and curb potential price inflation. Stability gives investors a greater incentive to hold coins and keeps prices at more profitable levels. That way the network uptime and bandwidth remain healthy.

Same here, I think that burning coins doesn't bring any innovation to the table.  It is just a plain scheme that has a psychological effect on people making them think that the coin is getting scarce. 


Project delivery, constant effort, and wise decision of developers can help stabilize the coin value.  Even with coin burning if they don't deliver the roadmap that they promise, the coins will surely won't get any interest from the investors.

Well, this coin burning function can really make a big difference and it is also considered as a method of advertising in the media when investors know very well that with reduced supply and capitalization maintained, the rest of the coin will have an increased chance to create uniformity and balance. However, this function is probably only suitable for some good altcoins and is the focus of the market, with small altcoins and lack of credibility, burning coins is just a signal to create pumps and dump.

Yes, but basically the burning of coins is to stabilize prices and of course the team must provide a good road map and concept to attract investors.

yes that's the concept. burning coins is intended to reduce the supply of coins so that coins in the leg will become very rare and automatically when the coins are scarce it will make the price even more expensive so that it will be profitable for all parties who are denied the burned coins.
In recent instances such as BNB, about $ 595 of coins were burned this month. take a look at the prospect of rising prices. the more it grows over time so that all those involved in BNB will benefit equally.

I have not heard anything in the name of tronix but the abbreviation TRX is well known for TRON (I agree these days same short forms are being used on different platforms so getting confused in most common because of such repeating names). Let me check on coinmarketcap about tronix so that I may learn something new today.

Let me explain about burning process: it is kind of losing key for your coins so that you will not able to make use of that coins. This is being done to have impact on circulating supply which will usually lead to value appreciations. I guess BNB platform is having in-built functionality for burning process whereas I am not seeing such things for ERC20 tokens.

That's the great thing about BNB. They have quarterly burning until it they reduced their supply into half. I think people will find token that have coin burning rather than none since the price will surely increase along with the major upgrades that they will develop in the future. This is the effective method to increase the price of the token.
I like project that have small supply and with token burning but most of all the project goals must always there.

the main purpose of burning coins is to experience an increase in price, but even though the coin has been burned it will not immediately increase in a short and fast time, the coin will still run and experience periodic increases based on the trading volume on the market

Coin burning does not mean an increase in price.  For a coin to have an increase in price, there should be demand for it.  Coin burning is just a scheme of making people think that it will go up in price due to the idea of scarcity but little that we know, there had been a lot of project that burn coins and yet they are all worthless.  The reason why Binance increase in price is not because they burn coin but because they deliver.

Quite right. The number of all coins decreases and most often the price rises. 6 days ago there was a tweet that Binance will burn 40% of all coins they collected on ICO for their team in 2017

Some time ago there were some coins that began burning their supply in some kind of predictable fashion, as we know the law of supply and demand reigns supreme and if the supply goes down then in theory the price of a coin should go up.

However while the developers can somewhat control one side of this law by decreasing the supply they have no control at all about the demand, if the demand for a coin is weak even if they burned 90% of the supply the price will not change much as the demand is still not there, as such do not waste your time with coins like these if that is all what they have going on for them.

You are right, coin burning means the total supply of coins will be decreased, but coin burning doesn't really mean it will push the price up, I have seen so many coins that get burned and still end up dumping, its not a matter of burning if the coin doesn't have a good potential it will still dump after the burning, coin burning will always favour only coins with good potential not just any random shitcoin.

Coins burning is a really cool deflation mechanism, which let issuer to decrease coins quantity and create deficit to make price higher. I really like this mechanism, it really helps many cryptocurrencies to control the supply

I don't like coins that has no fixed supply that's why I only bought coins with fixed or that do coin burning. Certainly it is an advantage hold a coin that do coin burn like Binance coin, crypterium etc. The supply will decrease and the demand will increase.

Goods Burt is one of the factors that cause variation in business. It reduce the quantity which cause scarcity and increase in demand. Secondly it where there is scarcity of goods the increase. The same thing as crypto market.

logically it will be like that but we also have to see from the type of coin, not all coins that burn the price will increase because it is also seen from the quality of the coin whether it has a good vision and mission for the future.

Token burn is action of removing tokens from cycle . its have good impact on price if token. When unnecessary token are removed then supply decreases and very high chances that it price will go high in several days.

Everyone will answer about the price and it is not wrong, several cases show that every coin burned by the developer, will lead to an increase in price. A concrete example of a coin burning policy is BNB, where the price of BNB is rising slowly and many people are starting to speculate that BNB is the next ETH.

Coinburn is an activity of sending coins to a wallet whose private key is not owned by anyone. That way, the coins will become unusable and become trash. Aim to reduce the total supply and keep the number of coins circulating in the public under control.

When the demand for the coin is constant or tends to go up, the increase in price is inevitable.

A coin burn is a really interesting method to decrease the supply of a coin. I think that projects that have a coin burn mechanism as part of their tokenomics and business model are particularly interesting for investors because the supply will decrease over time and therefore even with a consistent demand the price should move up at least in theory.
The Exchange KuCoin does this too for example. They take a part of the trading fees that they collected during a certain period and use that to buy KuCoin Shares from the Market. Those Tokens are then sent to a burn-address which is an address that no one has the private keys of, which means no one can access that wallet and those coins are basically gone then.

A Coin Burn is an event where a cryptocurrency permanently removes a specific number of its coins from the circulating supply (either manually or by design). This process results in a reduced total supply for a certain cryptocurrency, which inherently increases its value and scarcity.

Well, of course everyone will answer that because when the supply of the coin has been reduced, then the price of the coin will naturally increase. BNB is the most popular coin with burn, although there are other coins which has burn mechanism to reward the holders.
To increase the price of the coin, there are 2 ways : Increase the demands, or reduce the supply which means burn.

Yes, it means that some of the total supply will be burnt forever and no other coins/tokens will be minted instead. The burn will happen through a smart contract deploying.