Your Burning Questions about Verasity’s Recent Token Burn, Answered!
Verasity recently reached a major milestone by performing our first ever burn of VRA tokens.
Since the announcement, we’ve been monitoring your feedback and questions, and for those who aren’t familiar with the concept of token burns, we’ve put together this deep dive article to answer all of your burning questions on token burns!
When possible, we will give quarterly burn updates going forward.
What does ‘burning’ a token mean?
In cryptocurrency, “burning” tokens refers to the permanent removal of tokens from circulation, reducing the overall supply. The idea behind token burning is that by removing tokens from circulation, the remaining tokens may become more valuable due to the pressures of scarcity.
There are several ways that tokens can be burned. For example, a company may choose to “burn” a portion of its tokens, typically by sending them to a null address or a “burn address” on the blockchain.
The specific terms of a burn program, such as the frequency of burns, will vary depending on the company or project.
How are burned tokens permanently removed from circulation?
Tokens that are burned are removed from the circulating supply by being sent to a ‘null address’. This is how Verasity burns VRA tokens.
A null address in cryptocurrency is an address with no assigned value or purpose. It is sometimes referred to as a “burn address,” “black hole address,” or “sink address.”
The purpose of a null address is to serve as a destination for coins or tokens that are meant to be permanently removed from circulation, also known as “burning.”
Recent Verasity Token Burn
Verasity recently completed its first $VRA burn. The on-chain transaction can be found here.
Verasity reserves the right to determine how many tokens will be burned in any given quarter.
https://verasity.io/termsandconditions
https://verasity.io/tokendisclaimer
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