What Is a Token Burn Mechanism and How Does It Affect Token Supply?
A token burn is the permanent removal of a certain number of tokens from the circulating supply by sending them to an unspendable address (a 'burn address'). This action reduces the total and circulating supply, which, assuming demand remains constant, creates a deflationary effect and puts upward pressure on the token's price.
It is often used to offset inflation or as a value accrual mechanism.
