0

0

0

0

0

0

0

0

0

This article is more than 5 month old.

Explained: How does crypto coin burning work

Mini

Crypto burning is a very transparent process. Anyone can verify the burning process on the blockchain. But for it to begin, a miner has to decide how many coins they want to take out of circulation. 

Explained: How does crypto coin burning work
Coin burning is a process where cryptocurrency miners and developers remove a specific portion of coins from circulation to control their price.
The biggest ever coin burn was conducted by Ethereum founder Vitalik Buterin when he burned 90 percent of his Shiba Inu holdings. Recently, Indian cryptocurrency exchange, WazirX conducted a coin burning exercise in which it removed 7.3 million WazirX coins (WRX) from circulation.
How does coin burning work
Crypto burning is a very transparent process. Anyone can verify the burning process on the blockchain. But for it to begin, a miner has to decide how many coins they want to take out of circulation.
The burning process removes that particular amount of coins from the market. Basically, the miner sends those tokens to an address with no private key. Without any private key, no one can access the coins. This results in the effective removal of the coins.
For more information, check out our infographic on which explains the entire process in detail:
next story