Automatic Token Burn refers to a process where a certain amount of tokens is permanently removed from circulation without the need for manual intervention. This usually occurs when specific conditions are met, often programmed into the token’s smart contract.The purpose of burning tokens is to reduce supply, which can enhance scarcity and potentially increase the value of the remaining tokens. It’s a strategy used by projects to combat inflation and maintain a healthy ecosystem.Common triggers for automatic token burns include reaching specific trading volumes, achieving network milestones, or completing transactions. When these criteria are met, tokens are sent to an address from which they cannot be recovered, effectively making them unusable.Projects may publicly announce their burning schedules or mechanisms to maintain transparency with their community and attract investors. Overall, automatic token burn serves as a tool for managing supply and can impact market dynamics significantly.
UK’s FCA to Allow Retail Investors Limited Access to Crypto ETNs
The UK’s Financial Conduct Authority (FCA) will permit retail investors to access certain crypto asset-backed exchange-traded notes (cETNs) for the