How a burn works
Think of it like taking money and locking it in a safe that can never be opened, those tokens are gone forever.Permanent removal
Burned tokens are sent to an inaccessible wallet and can never be retrieved or spent.
Reduced supply
Burns lower the total supply of a token in circulation.
Why projects burn tokens
Burns are usually done to reduce the total supply of a token. It is similar to a company buying back its own shares: when supply goes down and demand stays the same or increases, each remaining unit becomes more scarce. Burns can also signal that a project is committed to long-term stability, because it is giving up part of its own supply to benefit the ecosystem.Scarcity can influence value over time, but token prices are affected by many factors. A burn is one mechanism among many and is not a guarantee of any particular price outcome.
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