How Does Token Burning Affect the Circulating Supply?
Token burning directly reduces the circulating supply because the burned tokens are permanently removed from the set of coins available to the public. A lower circulating supply, assuming stable or increasing demand, can lead to upward pressure on the price of the remaining tokens.
It is a fundamental supply-side economic lever.
Glossar
Circulating Supply
Distribution ⎊ Circulating supply within cryptocurrency represents the total number of coins or tokens that are publicly available for trading and transfer, excluding those held in reserve by the issuer or locked in smart contracts.
Token Burning
Burn ⎊ The deliberate and permanent reduction of tokens within a cryptocurrency ecosystem represents a mechanism designed to influence supply dynamics and potentially enhance the value of remaining tokens.