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Token Burning in Cryptocurrency: Purpose, Process, and Impact

This presentation explores Token Burning in Cryptocurrency, covering its purpose, process, and impact on tokenomics. Learn why projects burn tokens, how the mechanism works, and its effects on supply, value, and investor confidence. A concise guide for beginners and enthusiasts to understand one of the key deflationary strategies in the crypto ecosystem.

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Token Burning in Cryptocurrency: Purpose, Process, and Impact

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Presentation Transcript

  1. TOKEN BURNING Understanding the Why, How, and What of Burning Tokens

  2. What Is token burning? The process of permanently removing a certain amount of tokens from circulation by sending them to an irretrievable address (burn address). Burn Address: A wallet with no private key, making access impossible.

  3. Why Burn Tokens? Reduce supply to increase scarcity Fight inflation and maintain value Reward long-term holders Attract investor confidence Maintain project health over time

  4. Types Token Burns Manual Burn: Conducted deliberately by a project/team Programmatic Burn: Automatically coded into smart contracts Buy-Back and Burn: Project buys tokens from the market and burns them

  5. How Token Burning Works Step 1: Project or user decides to burn tokens Step 2: Tokens are sent to a burn address Step 3: The transaction is recorded on the blockchain Step 4: Supply reduces permanently

  6. Pro of Token Burning Increases token value via scarcity Builds investor trust Acts as deflationary measure Useful for regulating supply-demand dynamics

  7. Cons / Risks Not always transparent Could mislead investors (pump & dump) No guaranteed price increase Over-burn can affect liquidity

  8. Future of Token Burning Integrated into tokenomics of modern projects Expected in DAO governance Will evolve with better transparency tools Community burns will grow in popularity

  9. Conclusion Token burning is a key part of many crypto ecosystems Helps manage supply and support token value Transparency and strategy are crucial for real impact

  10. Thank You In a bold move to strengthen its tokenomics and investor confidence, $helder has announced a 4M token burn, aiming to significantly reduce circulating supply and increase long-term value. www.helder.world helder_world_pg @helder_world90

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