A burning tokens/coins mechanism permanently removes a certain amount of assets from circulation.
What is it for?
👉🏻 to reduce the circulation number of coins/tokens,
👉🏻 to artificially increase the value of the asset,
👉🏻 to maintain stable network operation.
Customer demand for an asset increases with a decrease in the number of units of this asset in circulation .
The ways of burning coins and tokens are as follows:
🔹 Burning on the wallet. The management of the exchange/project creates a separate wallet (address) that does not have keys, to which a part of the asset that they want to withdraw from circulation is transferred.
Such a program has the function of destroying a virtual asset.
Burning tokens and coins has proven to be one of the most effective ways to increase their value over the years.
The smart contract of the Grand Time project also provides for the GRAND token burning possibility using the “burn” function.