Coin burning means destroying a certain amount of units of a specific digital currency. The main purpose of the process is to support or raise the price of a cryptocurrency.
Coin burning can be carried out in several ways:
• Sending the coins to a particular address that no one has the private keys to (this is also often the case with users who make typos in receiver’s address);
• Liquidation of transaction fees, which also helps eliminate transaction spam;
• Miners can also remove coins by requesting not full but partial reward;
• Using special third-party software;
• Creating a hard fork that also helps create a new digital currency by taking a number of coins from an existing one and transferring them to a new one.