What Is the Difference between a Token Burn and a Token Lock-Up?
A token burn is the permanent removal of tokens from the circulating supply by sending them to an unretrievable address (a "burn address"), reducing the total supply forever. A token lock-up is a temporary restriction that prevents tokens from being traded for a specified period, but the tokens still exist and will eventually re-enter the circulating supply.
Burn is permanent scarcity; lock-up is temporary supply control.
Glossar
Token Burn
Process ⎊ A Token Burn is the intentional, cryptographic destruction of a quantity of digital assets, executed by sending them to a publicly verifiable, non-recoverable address on the blockchain.
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.
Burn
Destruction ⎊ The process wherein cryptocurrency tokens are permanently removed from circulation by sending them to an unrecoverable address, effectively reducing the total supply.