About coin burn and how it works

[Dorjoy12 8962]

Coin burn is very important topic now a days for all the member of crypto world..    So its necessary to male   a topic about coin burn and explained how it works ...  For any question ask in comment box ❤ 

What is coin burn??  

 You can say that  the coin burning is a process by which the burned token get  removed from the circulating supply... That is why , the total supply also get    reduced...  Actually alll projects have the same purpose of burning...and project team do this for  reduce the total token amount....

 
If you want to understand the matter of burning clearly  then we easily can be discussed  about any  Project burning  process .. So for this discussion i like to use BNB's burning process as an example...

 

We all know that,the total supply  of BNB coin was 200,000,000 BNB.. Bit now its total supply  is around 176,406,561 BNB.. While circulating  supply is around 144,406,560 BNB.. So it clearly  means  23,593,439 BNB have been burned by a total of 12 burns so far...

Usually the   burning process done every 3 months that was mentioned earlier in their  project white paper.. Also you need to know that binance  will keep their burning  process  till the total supply  dont reached 100,000,000 BNB..  Which indicate us they will burn 50% coin of their total supply.. All the projects that keep their burning process, how and for how many days they will burn their tokens in a row is usually mentioned in their white paper...Maybe many member  has no idea about  how the coin burn work... So let's  try to know how the burning  process  work .. 

 

How coin Burn works?? 

 

First, the subject is completely based on burning method... That is why coin holder usually calls the burn function to burn a exit amount of coins.. Secondly , After the function calls, the call usually verifies the BNB contract address.. Then see if the amount of coins / token has stored or not in the wallet from where made called for burn the token.. 

Thirdly, if the wallet doesn't  have the amount of token then the called will be valueless mean the authorities wont care the call..  Whicjh will lead that burn function is not executed.....

Fourthly,   if there are enough coins in that wallet then the function will be accepted.. That is why,  the amount  of token was called for burn get substraction ..  Then the latest contract address  get updated.. 

If the burn function is executed once to burn coins or tokens then  the amount of coins and tokens that are burned will be canceled forever... Those coin will be never able to added again.. 

Again, BNB has a burn function that anyone can use to burn from their wallet at any time without any condition .. So anyone who burns using this function of BNB will remove the amount of coins from their wallet that they will burn from the circulation function....  So every one can verify  that..  Its means everyone can see how much coin has been burned.. 

 

 Result  of coin/ token burn.. 

 

Hope we easily understand from the above discussion that the amount of coins or tokens that get burned is permanently removed from the circulation supply...  Also the  total supply get updated and from there coin also get reduced ....

 

In one words , the amount  of token get burned  is totally get  removed from  total supply .. That never be able to get back again.. And its means the total supply decreases from the current supply so its   easy to  say that the value of that coin can increase than the previous price..   . Because  according  to the demand we cant give the  Supply  then surely  coin value will  Increase .. 
Its means  if any coin get burned then its good news for those  coin holder ... 

 

As example : if you try to take a research on BNB or   look to BNB then you can see that they will burn 50% of their coin which is project planning 

. ..  Its means they will burn easily 100 millions BNB from 200 millions  BNB.. Thus the  value  of BNB coin will increase  in future...

 

Best of luck cryptotalk members 💕 

Edited October 25, 2020 by Dorjoy12

[Atiqkhan0 71]

2 hours ago, Dorjoy12 said:

First, the subject is completely based on function.. For this reason,  coin holder calls the burn function to burn a certain amount of coins.. Secondly , After the function calls, the call verifies the BNB contract address.. And see if the amount of coins / token has or not in the wallet from where made called for burn the token.. 

Thirdly, if the wallet doesn't  have the amount of token then the called will be invalid ...And that burn function is not executed...

Fourthly,  and if there are enough coins in that wallet then the function is executed. For this reason,  the amount  of token was called for burn get substraction .. And latest contract address  get updated.. 

If the burn function is executed once to burn coins or tokens then  the amount of coins and tokens that are burned will be canceled forever... Those coin will be never able to added again.. 

On the other hand, BNB has a burn function that anyone can use to burn from their wallet at any time...Anyone who burns using this function of BNB will remove the amount of coins they will burn from the circulation function.... And any one can verify  that.. That means everyone can see how much has been burned

And thus there is a brief easy through which that coin is being just burnt these all coins. And hence we can say that all of that can be happen.

[duncun007 3577]

burning coins is one of the strategies done by the team to reduce the number of coins in circulation, and therefore increase the supply which makes the price jump, this can be a good strategy to be used by many coins that have insane amount of coins like 5 billion coins in circulation.

[Dorjoy12 8962]

3 minutes ago, duncun007 said:

burning coins is one of the strategies done by the team to reduce the number of coins in circulation, and therefore increase the supply which makes the price jump, this can be a good strategy to be used by many coins that have insane amount of coins like 5 billion coins in circulation.

@duncun007 you are right about coin burn.. Usually coin burn happen  with those coin   that huge amount coin like you mean total supply 5 billion ... For this huge amount of token, the token price usually remain low..that is why the project team took decision to burn the coin Which will help the coin price increase and etc benefits..         

[rekter 8129]

Usually in ETH's case when you burn coins/tokens are sent to burn address, in the case with bnb, are they been sent to burn address or what is this function you speak of?

[SatoshiGames72 68]

7 hours ago, Dorjoy12 said:

La quema de monedas es un tema importante hoy en día que todos necesitamos saber ... Así que hice un tema sobre la quema de monedas y expliqué cómo funciona ... Para cualquier pregunta, pregunte en el cuadro de comentarios ❤ 

¿Qué es la quema de monedas?  

   El proceso de quema de monedas es un proceso por el cual la ficha quemada se retira del suministro circulante. Por esta razón, la oferta total también se reduce ... Todos los proyectos tienen el mismo propósito de quema. Y eso es para reducir la cantidad total de fichas.

 
Para entender claramente el tema de la grabación, podemos discutir sobre cualquier proceso de grabación del Proyecto. Y para esta discusión usaré el proceso de grabación de BNB como ejemplo ...

 

El suministro total de monedas BNB fue de 200,000,000 BNB .. Ahora su suministro total es de alrededor de 176,406,561 BNB .. Y el suministro circulante es de alrededor de 144,406,560 BNB .. Sus medios 23,593,439 BNB han sido quemados por un total de 12 quemaduras hasta ahora ...

Este proceso de combustión se realiza cada 3 meses que se mencionó anteriormente en su documento técnico. Y binance mantendrá su proceso de combustión hasta que el suministro total no llegue a 100,000,000 BNB. Esto significa que quemarán el 50% de su suministro total 

Todos los proyectos que mantienen su proceso de grabación, cómo y durante cuántos días quemarán sus tokens seguidos generalmente se mencionan en su libro blanco ...

 

Quizás muchos miembros no tienen idea de cómo funciona la quema de monedas ... Así que intentemos saber cómo funciona el proceso de quemado ... 

 

¿Cómo funciona Coin Burn? 

 

Primero , el sujeto se basa completamente en la función. Por esta razón, el portamonedas llama a la función de quemado para quemar una cierta cantidad de monedas. En segundo lugar , después de que la función llama, la llamada verifica la dirección del contrato BNB. cantidad de monedas / token tiene o no en la billetera desde donde se solicitó quemar el token .. 

En tercer lugar , si la billetera no tiene la cantidad de token, la llamada no será válida ... Y esa función de grabación no se ejecuta ...

En cuarto lugar,   y si hay suficientes monedas en esa billetera, se ejecuta la función. Por esta razón, se solicitó la cantidad de token para quemar y obtener sustracción ... Y la última dirección del contrato se actualice ... 

Si la función de quemado se ejecuta una vez para quemar monedas o fichas, la cantidad de monedas y fichas que se queman se cancelará para siempre ... Esas monedas no se podrán volver a agregar nunca más. 

Por otro lado, BNB tiene una función de grabación que cualquiera puede usar para grabar de su billetera en cualquier momento ... Cualquiera que quema usando esta función de BNB eliminará la cantidad de monedas que quemará de la función de circulación ... Y cualquiera puede verificar eso ... Eso significa que todos pueden ver cuánto se ha quemado ... 

 

 Resultado de la quema de monedas / fichas. 

 

Entendemos de la discusión anterior que la cantidad de monedas o fichas que se queman se excluye permanentemente del suministro de circulación ... Una vez más, el suministro total también se actualiza y de allí también se restan las monedas ...

 

En una palabra, la cantidad de fichas que se queman se elimina totalmente del suministro total ... Eso nunca podrá volver a recuperarse ... Y cuando el suministro de circulación de una moneda, el suministro total disminuye del suministro actual, es Es fácil decir que el valor de esa moneda puede aumentar ... Porque de acuerdo con la demanda, si la Oferta se reduce, entonces seguramente el valor de la moneda aumentará ... 
Es decir, si alguna moneda se quema, entonces es una buena noticia para los poseedores de monedas ... 

 

Por ejemplo: si miras a BNB, puedes ver que quemarán el 50% de su moneda. Significa que quemarán 100 millones de BNB desde 200 millones de BNB. Por esta razón, el valor de la moneda BNB aumentará en el futuro. ..

 

Mucha suerte miembros de cryptotalk 💕 

It is the strategy but even so it has to be backed by a good project otherwise the token will never be worth anything in this case and the example is a very good BNB token so it supports its value, neither do you have to buy any token that can burn greetings

[Honny143 13612]

@Dorjoy12 coin burning strategy helps that coin value increase in market, but that coin also need good project then this strategy success like bnb coin, otherwise in crypto market there are so many useless coins if we burn them then also its not effective those coins.

[justcryptofan 72]

Coin burn may short term increase the value of the coin, but from the long term perspective has not such weight on the overall performance of the coin, as the most important think is to have sold DEV team which could bring very good ideas to correct the path of the coin durng evolution phase until become one day mainstream

[Dorjoy12 8962]

18 hours ago, rekter said:

Usually in ETH's case when you burn coins/tokens are sent to burn address, in the case with bnb, are they been sent to burn address or what is this function you speak of?

@rekter Function is a process, if you want to burn a token then you need to send the token to the burn address of that network and your token will be burned.... That is all about function..  You can take burn function as Mining function.. 

 

13 hours ago, Honny143 said:

@Dorjoy12 coin burning strategy helps that coin value increase in market, but that coin also need good project then this strategy success like bnb coin, otherwise in crypto market there are so many useless coins if we burn them then also its not effective those coins.

@Honny143 without any doubt what you have said is true my friend..  Not every coin project is same like bnb because  to burn any coin the project team need to do this planning Before launched the coin project like BNB..             

[Dorjoy12 8962]

1 minute ago, Mosharraf said:

@Dorjoy12,,,You have published very good information, so we have learned about Coin Burning, I have never heard of Coin Burning before, Exchange platform works for Coin Burning, I think the purpose of Coin Burning is to remove Coin from the market.  , BNB coins are burning, as a result the demand and supply of BNB coins is decreasing day by day, as a result BNB market is collapsing, I think if coins start burning like this, BNB coins will be completely destroyed

@Mosharraf  you should read the topic clearly because coin burn project is not for destroy a coin.. BNB has a plan to burn their 50% coin before they start this BNB coin project and i have mentioned it in the topic.. Yah its true that for burn coin that coin demand increase in market as the supply decrease..        

[Dorjoy12 8962]

1 hour ago, Mosharraf said:

you reduce the supply of coins in this way and halve it, one day this coin will be destroyed.

@Mosharraf  the BNB project team has a planning to burn 50%  Coin of bnb.. The total supply of bnb was 200 billion usd but as they will burn 50% coin then the amount of total supply will down around 100 billion.. This is the only way to increase the demand of bnb more.. It will not be destroyed anymore..        

[rekter 8129]

3 hours ago, Dorjoy12 said:

@rekter Function is a process, if you want to burn a token then you need to send the token to the burn address of that network and your token will be burned.... That is all about function..  You can take burn function as Mining function.. 

Right, the reason i was intriqued was because i just came across with another method from Jeff Wilcke that apparently doesn't send burned coins/tokens to burn address. I am not sure how that works because i lack the coding skills but i thought that BNB mimght use this sort of self destructing technique

 

More info from 1st answer if you are interested: 

https://ethereum.stackexchange.com/questions/16188/best-way-to-burn-ethers-and-other-ethereum-tokens?utm_medium=organic&utm_source=google_rich_qa&utm_campaign=google_rich_qa

 

 

[Honny143 13612]

2 hours ago, Dorjoy12 said:

@Mosharraf  the BNB project team has a planning to burn 50%  Coin of bnb.. The total supply of bnb was 200 billion usd but as they will burn 50% coin then the amount of total supply will down around 100 billion.. This is the only way to increase the demand of bnb more.. It will not be destroyed anymore..        

You're right @Dorjoy12 its a basic rule in market if we decreased supply then automatically demand increased, same rule applied in bnb coin also that's why BNB team burning BNB coins, and the result we are seeing present bnb coin price around 30$ dollars.

[Dorjoy12 8962]

35 minutes ago, Honny143 said:

You're right @Dorjoy12 its a basic rule in market if we decreased supply then automatically demand increased, same rule applied in bnb coin also that's why BNB team burning BNB coins, and the result we are seeing present bnb coin price around 30$ dollars.

@Honny143 as BNB   is the best exchange site binance coin so without any doubt day by day the bnb price will increase more.. But there has a problem  with     bnb coin too that is if some day Binance exchange site face any Problem then the bnb coin price will Increase too which happen with kucoin exchange site own coin..           

[Honny143 13612]

18 minutes ago, Dorjoy12 said:

@Honny143 as BNB   is the best exchange site binance coin so without any doubt day by day the bnb price will increase more.. But there has a problem  with     bnb coin too that is if some day Binance exchange site face any Problem then the bnb coin price will Increase too which happen with kucoin exchange site own coin..           

Well @Dorjoy12  in future what's happen we don't predicted but now a time BNB coin investment really profitable, because bnb price increasing promisingly,

l know why are fearing to see the bnb coin growth if unusual think happens like kucoin, then bnb coin market collapse and investors face Hugh loss, maybe hope not like happen this type in future.

[Dorjoy12 8962]

48 minutes ago, Honny143 said:

Well @Dorjoy12  in future what's happen we don't predicted but now a time BNB coin investment really profitable, because bnb price increasing promisingly,

l know why are fearing to see the bnb coin growth if unusual think happens like kucoin, then bnb coin market collapse and investors face Hugh loss, maybe hope not like happen this type in future.

@Honny143 i am thinking about this too.. I also planning to buy some bnb coin when talk token trade will be open.. I will hold some bnb coin for long term to get some huge profit next year..  Its amazing that few months ago bnb price was 16 usd but now 30 usd.. Its really attract me About bnb coin..              

[Honny143 13612]

8 minutes ago, Dorjoy12 said:

@Honny143 i am thinking about this too.. I also planning to buy some bnb coin when talk token trade will be open.. I will hold some bnb coin for long term to get some huge profit next year..  Its amazing that few months ago bnb price was 16 usd but now 30 usd.. Its really attract me About bnb coin..              

Its a really good decision @Dorjoy12 because bnb coin shown good growth in crypto market, there is no other altcoin coin growing like this, so iam also recommends maybe I'm also invest in bnb, if I earn good profit when talk token launch for trading, 

[Dorjoy12 8962]

1 hour ago, Honny143 said:

if I earn good profit when talk token launch for trading, 

@Honny143 talk token makes us disappointed already two time and its means we cant hope something useful from talk token.. English section members think talk token price will be 100 satoshi but russian member think talk token price will be 20-80 satoshi.. Its makes me more sad... But lets see what happen..            

[Projectcrypto 4382]

1 hour ago, Honny143 said:

Its a really good decision @Dorjoy12 because bnb coin shown good growth in crypto market, there is no other altcoin coin growing like this, so iam also recommends maybe I'm also invest in bnb, if I earn good profit when talk token launch for trading, 

BNB is currently reading $30 in the Cryptocurrency marketplace and it will be nice if we invest now because i believe it will definitely increase higher before the end of the year because it has good potential in the market, so let's hope talktoken give good price when it begins trading in November and I am expecting the value to be at the region of 300-400 Satoshi.

[Honny143 13612]

17 minutes ago, Dorjoy12 said:

@Honny143 talk token makes us disappointed already two time and its means we cant hope something useful from talk token.. English section members think talk token price will be 100 satoshi but russian member think talk token price will be 20-80 satoshi.. Its makes me more sad... But lets see what happen..            

@Dorjoy12 this talk token playing with our emotional, every time they disappointed us, do know yesterday I really frustrated when I heard this token launching date postponed once again,

if you says like this token open at 20 to 80 satoshis then maybe l leave this forum, because we expected minimum 100 sat hope open at this price.

[Dorjoy12 8962]

14 hours ago, Honny143 said:

@ Dorjoy12 this talk token playing with our emotional, every time they disappointed us, do know yesterday I really frustrated when I heard this token launching date postponed once again,

if you says like this token open at 20 to 80 satoshis then maybe l leave this forum, because we expected minimum 100 sat hope open at this price.

@Honny143 there has lot of members in this forum planning to leave so as you said.. As we work here more than 3 month without any real money but with the hope of talk token profitable price.. But if fhey make us disappointed with talk token price again then it will be very bad for forum reputation.. But it also good that forum now pay us every day 20k satoshi Which mean more than 2 USD..          

[julianisaac 97]

Another cryptocurrency that burns when its price drops is CHSB. The strategy basically aims to lower the supply so that the price rises due to the lower supply and, consequently, higher demand. I consider that it is a very good strategy since in the long term it maintains the value of the cryptocurrency

[Honny143 13612]

4 hours ago, Dorjoy12 said:

But it also good that forum now pay us every day 20k satoshi Which mean more than 2 USD.

Iam agree @Dorjoy12 forum pays us 20 k satoshis but when? When our post received good reputation, then they pay us means there is also restriction, they are not paying total amount for our hard work,

You're right last 4 months we are working in this forum to expect we earns good profit, if we cannot earn good profit then there is no use to work in this forum, better to leave we have no other option because they already two times disappointed us.

[Dorjoy12 8962]

9 minutes ago, Honny143 said:

forum pays us 20 k satoshis but when? When our post received good reputation, then they pay us means there is also restriction, they are not paying total amount for our hard work,

@Honny143 i can suggest you a easy way how you can get react almost in your All topic..usually you do 20 post every day but to get react  in all post you need to tag senior member of our english section by quoted their recent post.. Also you need to do daily 25 or more post... Follow this instruction and hope you can received good reputation..               

[Projectcrypto 4382]

This is a very helpful topic that will help many members in this forum especially the newbies who have less experience about Cryptocurrency because coin burning is done to improve the value of a specific coin in the market but the project also need to be strong but if the project is not strong definitely the value won't improve instead it will keep going down untill it becomes dead coin.