Burning in cryptocurrency refers to the process of intentionally eliminating a certain amount of a digital asset from circulation. This is achieved by sending the tokens to a wallet address that is inaccessible, often called a “burn address.” Once tokens are sent there, they cannot be retrieved.The primary purposes of burning tokens include reducing the total supply, which can potentially increase the value of the remaining tokens. This is based on the economic principle of supply and demand. By decreasing supply, the hope is that demand will rise, thereby increasing prices.Burning can also be employed as a mechanism to reward holders by making each remaining token scarcer. Some projects use regular burn events as part of their tokenomics, where a percentage of transactions or fees is burned periodically.Overall, token burning is a strategic decision made by developers and platforms to manage token supply and incentivize long-term holding.