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Hello Steemians

I trust you are doing fine today. You're highly welcome to my post today. In this, I have discussed cryptocurrency burn. Below, I have answered all the questions that were asked in the contest.

Use your own words to determine what is "token burn." and explain how it works (if possible, add an illustration for it)?

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The word "token burn" is what is used to describe the burning of a cryptocurrency. Token burn simply means removing a coin (cryptocurrency) from the overall supply of a cryptocurrency in the market. Token burning typically involves sending the tokens to a wallet that has no private key. i.e., a crypto wallet that is not in use. The crypto wallet can only receive coins but cannot send them out, which makes it inaccessible.

Token burn is also a way of maintaining the value of a cryptocurrency in the market. Token burning is a community effort to support the growth of cryptocurrency. Just like on the Steemit platform, where almost all users are in support of token burning. When everyone, or all users, on a platform burns a small number of their cryptocurrency holdings at the same time, it can make a big difference in the overall number of coins that are in circulation and therefore add value to the coin because the price of the coin will rise.

The most popular technique to burn tokens is to send them to a wallet, where they will be destroyed. The only thing a user technically needs to do to burn STEEM is to set 25% of his or her posts to @null, which is an incorrect username. The majority of cryptocurrencies, however, have clear guidelines and procedures in place for burning tokens.

screenshot gotten from my post

Burning tokens happens automatically. For example, some networks use a small amount of cryptocurrency as a transaction fee or to burn during mining. But on Steemit, users set 25% of their posts to the @null account, as you can see from the above illustration.

List the benefits of token burning with a detailed explanation of each.

Increase Value
One of the main benefits of token burning is to maintain the value of cryptocurrencies. After a significant burn, the average price per coin may rise for a variety of reasons. Burning tokens aims to increase demand by lowering the total supply of a coin. Theoretically, the price will increase if there is a large demand for a limited quantity of tokens.

Publicity is another reason why coin prices can rise following a fire. Large token burns frequently get community support. To this, I can also say that it increases the value of the coin to investors.

Reduce inflation
Token burning can significantly lower inflation and encourage users to hold for projects as well as holders. But the Proof of Burn mechanism still has issues, which is presumably why this consensus mechanism hasn't taken off yet.

Why does the blockchain burn its tokens? Study the case of a blockchain that burned its tokens by identifying the results obtained.

The Steem blockchain burns its tokens in order to maintain price stability, i.e., value. Steem blockchain also burns its tokens to increase the value of its coins in the market. Too many tokens circulating in the market may cause inflation, where the token will lose its value in the market.

Binance burn is something I can discuss. Binance's ultimate objective is to reduce the circulating supply of BN by 50%, which started at 200 million BNB in 2017. Binance has executed 20 of the scheduled quarterly auto-burns in addition to the daily burning mechanism, which has taken 106,000 coins out of circulation thus far.

Based on events that occurred on the Binance ecosystem during Q2 2022, the most recent occurred earlier in July and resulted in the burning of 1,959,595.29 BNB. When estimated using the pricing from July 13, this sum came to $444 million.

The total quantity of BNB burned as of this writing is a little under 39 million, which is equal to $9.3 billion at today's rates, suggesting that there are still over 161 million BNB in circulation. After the third quarter ends, the next major fire will occur. The image below shows the history so far.

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The burnsteem25 company that encourages burning 25% of your publishing revenue? Do you think it will help boost the value of steem currency in the medium term?

Yes, I think the Burnsteem25 company, which encourages burning 25% of my publishing revenue, will help boost the value of Steem currency in the medium term.

When it comes to cryptocurrencies, there are a lot of great communities that support the burning of tokens so the tokens can have value. In the Steemit platform, investors and other users can inspire other users to invest or become involved in burning Steem so there can be more value.

By burning 25% of my publishing revenue, I am sure it would boost the value of Steem currency on the medium team. Burning is a way of increasing the value of a cryptocurrency while reducing inflation of such a currency, which is why it is never a bad idea to burn Steem currency.

Thank you for coming around...

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@yakspeace
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