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Token burning in crypto involves removing coins from supply, increasing scarcity and value, similar to corporate share buybacks. Burning coins, also known as token burning, is a strategic action taken by crypto projects to remove a portion of their tokens from circulation. Proof of burn (POB) is an alternative consensus algorithm that tries to address the high energy consumption issue of a POW system.

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Proof of burn projects attract long-term users; incentivizes miners to earn burnt crypto back. Related Articles. What Is a Proof of Burn for Cryptocurrency?