Boomco 101: What Is Token Burning?

What does token burning mean?

What are the reasons for burning tokens?

Take a look at some reasons for burning cryptocurrencies below.

Increase value

The most common reason why some protocols burn a token is to increase its value.

Act as a consensus mechanism

Proof-of-burn (PoB) is a consensus mechanism that facilitates the burning of coins without energy waste. PoB has many applications:

  • Burning native tokens to earn credits, which are needed to perform an activity on the blockchain.
  • Burning a token to earn new tokens on a new network.

Maintain mining balance

Burning tokens on a regular basis can help strike the mining balance between early miners and new users. This is mainly because the PoB system promotes the mining of new coins instead of just mining the old ones.

How does token burning work?

Sending tokens to a burn address is the most common way to burn tokens. There are other methods as well. For example, Shiba Inu has its own burn system, which includes the use of a burn portal.

What are some examples of token burning?

Ethereum

Ethereum introduced a burning mechanism that involves burning tokens with each transaction in 2021. Since then, over 2 million Ether have been burned.

Binance Coin

As suggested above, Binance Coin has a burn function. It is also well-known for burning a number of tokens automatically each quarter.

The token burning mechanism of LER and BOOM

Boomco includes LER as a utility token and BOOM as a governance token. The token burning mechanism of these two is as follows.

LER

LER has unlimited supply with a daily earning supply cap. Boomco implements a complex burning mechanism for LER, which is not only mining enhancement-based but also supports massive non-mining sinking pools.

  • Backpack NFT Minting
  • Backpack NFT Synthesizing
  • Badge Socket Unlock
  • Badge NFT Synthesizing
  • Holding Tax Payment
  • Health Repair
  • Item Box Opening
  • Item use
  • Timer Speed up
  • Certification System Course
  • Certification System Assessment
  • Certificate Renewal

BOOM

BOOM has a limited supply of 1,000,000,000 BOOM.

  • Backpack NFT Minting
  • Backpack NFT Synthesizing
  • Badge NFT Synthesizing
  • Holding Tax Zero status revival
  • Certificate Renewal

Key Takeaways

Token burning is a useful tool to help crypto projects maintain the value of tokens and attract investors. Make sure you examine the burning mechanism of a token well before you choose to invest in its project.

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