How Is a Token Burn Often Used as a Mechanism for Revenue Sharing or Protocol Fee Distribution? ▴ Learn

How Is a Token Burn Often Used as a Mechanism for Revenue Sharing or Protocol Fee Distribution?

Protocols can use a portion of the transaction fees or revenue generated to buy back their native token from the open market and then burn it. This mechanism benefits existing token holders by reducing the supply, effectively distributing the protocol's revenue in the form of potential price appreciation.

It aligns the protocol's success with the token's value.

How Can a Derivative Protocol Use a Token Burn Mechanism to Manage Protocol Debt?

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

How Is the ‘Burn Rate’ of a Token Used to Manage Supply and Incentivize Loyalty?

Can a Token Be Both a Fee-Sharing and a Utility Token Simultaneously?