As Bitexen, the token burning we carry out every month for BTXN Token is a widely practiced process in the cryptocurrency industry. Token burning is carried out with the aim of permanently removing a certain amount of cryptocurrency from circulation and reducing the total supply. With a deflationary approach, this process reduces the number of tokens in circulation. As the total supply in circulation decreases, the value of the existing tokens is expected to increase in the long term.
Burning makes cryptocurrencies inaccessible and unusable. There is no real burning. It is carried out by sending cryptocurrencies to invalid (with no private keys) burning addresses. This process is permanent. Cryptocurrencies sent to these burning addresses cannot be recirculated in any way.
Why Burn Tokens?
As we mentioned, the main goal of cryptocurrency burnings is to increase the value of cryptocurrencies and keep them in the hands of investors. Theoretically, it is assumed that having fewer cryptocurrencies in circulation will increase the value of the cryptocurrency. Another reason is that if cryptocurrencies are not sold during an ICO, these unsold coins are burned to prevent depreciation and increase interest.
The BTXN Token Burning Process
For example, let us look at BTXN Tokens, our platform’s native cryptocurrency project. BTXN Token was issued with a fixed supply of 15 million units. At Bitexen, repurchases are carried out regularly every month with 50% of the non-BTXN Token commission income obtained from Bitexen.com and 100% of the BTXN Token commission income. These BTXN Tokens are then sent to the burning address and removed from circulation. The BTXN Token buyback will continue until the amount of BTXN Token in circulation reaches zero.
Here is our burning address: 0x0000000000000000000000000000000000000000
You can view all our burning processes by clicking here.
