How Does “Burning” a Token Affect Its Supply and Price?
Burning a token is the permanent removal of coins from circulation, typically by sending them to an unspendable "eater" or "burn" address. This action reduces the total supply of the cryptocurrency.
All else being equal, a reduction in supply can increase the scarcity of the remaining tokens, potentially leading to upward pressure on the price, as seen in deflationary mechanisms like EIP-1559.
