In general, Token burn is a process whereby a specific amount of tokens are permanently removed from circulation by transferring the tokens to a burn address, i.e, a wallet from which those tokens cannot be ever retrieved. Hence, leading to the reduction of amount in circulation.
When a crypto project burns its token, it removes a certain number of tokens from circulation. Effectively, the tokens are destroyed and cannot be used again in most cases, leading to the reduction of the total number of tokens in circulation. Therefore, reducing the supply of tokens in the market, without affecting demand which in turn have positive impact on the token price value as seen with several tokens in the past including Ethereum ($ETH) and Binance Coin ($BNB).
Over the weekend, 45,613 $UDO tokens were burned as announced by the Unido team on their social media platforms:
“This is a win for our existing token holders as they now hold a larger percentage of total tokens on issue, given the total issuance number has reduced by 45,613 $UDO.”
$UDO is a utility token, running at the heart of Unido’s ecosystem, designed to allow access to the ecosystem of products for developers, enterprises, institutions, and end-users of the applications. It will be utilized for a variety of new products that are expected to be built on top of Unido Core including:
Platform Access Fees
If you want to read more, you can find information on the blog:
Feel free to share your thoughts and experiences about token burn in general as well as Unido Enterprise Platform, Redditors.