What is token burning?

The phrase “token burning” sounds more dramatic than it actually is. Token burning doesn’t require any actual dissolving of digital assets. Those of you familiar with blockchain will probably know that it is impossible to disintegrate assets because the underlying protocol is fixed.

How many BNB tokens have been burned so far?

Out of 200 million BNB tokens almost 15 % have been burned during the process. According to the research, more than 30% of the tokens are expected to burn in upcoming years. The burn session from January to March 2021, was the 15th burn of BNB tokens. The overall BNB supply is affected by the burn of almost 1 million tokens.

Why do cryptocurrencies burn tokens?

Incentives for coin holders or traders are not the only reason behind token burning, some cryptocurrencies like Ripple conducted token burn to make transactions more secure.

What happens when a company Burns or locks a number of tokens?

Usually when a company burns or locks a number of tokens it causes the price to increase due to the law of supply and demand. After part of tokens is burnt their exchange rate grows up due to reallocation of their total value to the decreased amount.