A controlled burn in cryptocurrency refers to the process of deliberately removing a certain amount of tokens from circulation. This is usually done by sending the tokens to an unusable wallet or address. The goal of this action is to reduce the total supply of a cryptocurrency.Reducing supply can lead to increased scarcity, which may help raise the token’s value over time. This process is often used by project teams to stimulate interest and invest in their token.Controlled burns are sometimes executed at regular intervals or in response to specific events, such as achieving certain milestones or reaching predetermined trading volumes. Projects might announce these burns to keep the community informed and engaged.While the impact of a controlled burn can vary, it serves as a strategy for managing inflation and enhancing the long-term value of a cryptocurrency. By influencing supply dynamics, projects aim to foster a healthier market environment for their tokens.