The burning mechanism refers to the process of permanently removing a certain amount of tokens or coins from circulation. This is typically done by sending the tokens to a wallet that can only receive funds but cannot send them out, effectively making them inaccessible.The purpose of burning is often to reduce the total supply of a token. By lowering the supply, the value of the remaining tokens may increase if demand remains the same or grows. This strategy can create scarcity, which is a fundamental principle in economics.Various projects use token burning at different stages, such as after the completion of specific milestones or periodically as part of their monetary policy. Some may implement burns as part of their governance model, where decisions are made by the community.In essence, burning can serve both to enhance the value of a cryptocurrency and to engage the community in a project’s development. It’s a tool that helps manage supply and can foster investor confidence over time.