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![CoinstoreExc Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1371741609449037844.png) Coinstore [@CoinstoreExc](/creator/twitter/CoinstoreExc) on x 251.3K followers
Created: 2025-07-09 06:15:12 UTC

How Does Token Burning Work ❓

Token Burning is a deflationary mechanism that helps manage supply and support token value.

Here’s how it works:
1️⃣ Decision To Burn: The project team or token holders vote to burn a certain amount.
2️⃣ Sent To Burn Address: Tokens are permanently removed by sending them to a wallet that no one can access.
3️⃣ Blockchain Verification: Every burn is recorded transparently on-chain for anyone to verify.
4️⃣ Supply Adjustment: The total token supply is reduced, often supporting price stability or value growth.

Whether you're a builder or investor, understanding token burning is key to navigating tokenomics.

#crypto #trading #info #coinstore

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**Related Topics**
[blockchain](/topic/blockchain)
[holders](/topic/holders)
[token](/topic/token)
[coinstore](/topic/coinstore)

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