A burn fee is a mechanism used in various blockchain networks to reduce the total supply of a cryptocurrency through a process called “burning.” When a burn fee is implemented, a portion of the transaction fee associated with sending or receiving a cryptocurrency is sent to an address where it becomes inaccessible and is effectively removed from circulation.This action helps manage inflation by decreasing the total supply over time, potentially increasing the value of the remaining tokens. The burned coins can’t be retrieved, making them permanently out of reach.Burn fees are often part of a project’s economic model to create scarcity, encourage holding, and increase demand. Some projects may implement regular burning events or mechanisms that automatically burn tokens with each transaction.Overall, burn fees aim to enhance the overall economics of a cryptocurrency, contributing to its perceived value and incentivizing user participation in the network.