Coin burning is a concept unique and influential to the Cryptocurrency markets, having been examined, executed and adopted by a considerable number of coins and tokens. Though it may sound hard core, but coin burning is a central mechanism that could prove to be a popular feature for cryptocurrency projects down the road. In fact, many innovative projects like have integrated a coin burning mechanism to manage supply of the coin. Not only that, but exceptional new coins like TWINS from New Capital has recently burned 150 Million of its coins within 2 transactions at blocks 46359 and 46394. Please refer to the video below as the same was recorded for our community and was shared live for everyone to see.
There were of course, many motivations for TWINS project to consider a coin burn structure. This resulted in the locked coins to reach 80% and the total supply to come down to 580 Million. Lets see if there are any Advantages and Disadvantages of Coin Burn -
Advantages of coin burn for a coin like TWINS -
It is quite a valid argument that coin burn protocol encourages a long-term involvement in a project because prices will gain a greater level of stability since there is a greater percentage of investors willing to invest in the long term.
Especially for a decentralized currency like TWINS, coin burn encourages the fair distribution of cryptocurrency in a decentralized manner. This is contrasting to the proof of works methodology that is used in the likes of bitcoin, where we have seen the centralization of mining.
