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Author Topic: What is Coin Burning  (Read 1587 times)
benj_pirate
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November 28, 2017, 03:29:15 PM
 #21

how can you pay devs by burning tokens ?

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November 28, 2017, 03:41:54 PM
 #22

Coin burning is actually called proof of burn. Proof of burn is a protocol used by various altcoins to reduce the current available supply, whereby a specific portion of coins in circulation is sent to a wallet no one has access to (This is mainly used in ICOs). This  eliminates these coins from being spendable, although they will remain to be a part of all of the existing coins ever to be generated. Proof of Burn transactions are also recorded on that cryptocurrency’s blockchain, providing  proof that the coins would never be used to transact again.
If I understand what you said the ICO or coin owner send the coin to an address which no one have access to in other to increase their coin total circulating supply on the coin capital market so that the massive circulation we get the attention of investor?

No. Quite the opposite actually, it is done to remove/ lower the total circulating supply. thus making the coin more scarce/rare.

I guess companies also do it if their ICO didn't sell out the 100% of available tokens, they'll just burn the ones which weren't sold. ( In order to be fair to investors etcetera.)



Oh ok. Thank for you enlightenment and now I understand how the whole thing work but whoever first start this coin burning from the get go is completely a genius.

No genius involved, simply because it is done to decrease the circulating supply. It can be done with most commodities. The

farmers can collectively burn 80% of their corn fields and push up the price of corn, if they wanted to. I think it is highly

unethical to do that, but that is just my own opinion. The logic stands .... eliminate some of the supply and the price will

increase.  Roll Eyes

muf18
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December 11, 2017, 08:53:12 PM
 #23

Logically it should go to this as an answer.
https://bitcointalk.org/index.php?topic=1141676.0
First cryptocurrency, with PoB block generation.

jeeri
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December 12, 2017, 06:31:20 AM
 #24

Can someone explain what is coin burning and what is the purpose of it?
Coin or Token burning is nothing but making them inaccessible forever.
For example, if you are sending any ERC20 tokens to 0X ethereum address, they are not retrievable forever. so you lost them. there is no way to get them back. similarly, if you are sending them to an invalid address(which is not compatible with it at all), the coins/tokens will be lost. Coin/Token developers may use the first approach as per my knowledge.

Purpose: To reduce the inflation burning is the common thing to follow provided they have huge amount of coins/tokens available Tongue
When the swapping is done: Sometimes, devs create a new coin/token/project and use the old/existing coins/tokens. People who possess old coins/tokens can get the newly created coins/tokens by this method. If there are some old tokens/coins are left out, dev can burn them to reduce the inflation or to quote the exact available coins or to clean up the old ones all the way.

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