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Onchain Economics

Token Burn

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

In-Depth Explanation

Burns reduce total supply, theoretically increasing scarcity and value per remaining token. Ethereum burns a portion of gas fees (EIP-1559). Protocols may burn tokens from revenue or buybacks. Burns are deflationary but only create value if demand exists—burning worthless tokens doesn't create worth.

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