Why Burn Coins?
The process of removing coins circulations in the market & destroying it for further use, we called coins burning.
While decreasing the supply of the coins, it is also increasing its scarcity but what is the reason for it and how does it benefit the market?
Whats the Ups & Down Side
The process of burning coins helps to reinforce the value of those shares that remain in the circulations where all coins holders are benefited from the burning.
There is no downside on burning coins but there is also a certain period burning doesn’t mean the value of the coins increase as well, it only increases the chances of it increase as supply fall.
Example Like BNB
BNB can be shown as an example of a coin being burn. In what condition coins are burn and how they determine the number of coins to burn.
BNB burns are quarterly events that happen after the end of every quarter. Binance exchange would burn 20% of its quarterly profits in the BNB burn.
However, the whitepaper change renew time to time occasionally, so we can expect the benchmark of the burning from BNB’s revenue.
One negative side effect may be that you won’t be able to use the burn number to reverse calculate Binance revenues, etc.
You may still be able to infer that our revenues are lower than a certain number.