Explain the Concept of “Token Burn” and Its Effect on Fungible Token Supply and Value

A token burn is the permanent removal of tokens from the circulating supply by sending them to an unspendable address, often called a "black hole" address. This action is usually performed to reduce the total supply, creating scarcity.

By reducing supply while demand remains constant or increases, a token burn is a deflationary mechanism intended to increase the value of the remaining tokens. It is a common practice in projects to manage tokenomics and incentivize long-term holding.