A burnable token is a type of cryptocurrency or token that can be permanently removed from circulation. This process is known as “burning.” When tokens are burned, they are sent to an address that is inaccessible, effectively reducing the total supply of the token.Burning tokens can serve several purposes. It can help create scarcity, potentially increasing the token’s value by making existing tokens more rare. Projects may choose to burn tokens as part of a deflationary strategy to enhance investor confidence.Additionally, some projects implement regular burning events as part of their operational model, responding to various market conditions or to reward holders. This process can also be a mechanism to manage inflation and ensure that the token maintains its value over time.Overall, the ability to burn tokens plays a significant role in the economic structure of many token ecosystems, influencing both behavior and the overall market dynamics.