Token Burning
Token burning describes the elimination of particular existing cryptocurrency coins from circulation or distribution. The “burning” of the cryptocurrency coins involves sending the tokens to an inaccessible address or address that is not managed or controlled by any individual.

$ NEK Token Burning Mechanics

Category
Conditions Burning
Amount
Data
Token Sale
IDO/IFO/IGO UnLock
After completion, the all unrealized tokens will be burned.
80%
Fully unlocked on TGE.
80% of the unrealized pool on Public Sale/IDO/IFO will be burned and 20% committed to the liquidity pool on exchanges.
Smart contract of the project Lock
Blocked tokens on a smart contract. Unlock 2% of the total balance every 30 days.
0% - 100%
Every 30 days.
Start - March 2022
Lock -Tokens are blocked on 2 smart contracts (escrow | Ethereum
and BCS
)

Why do companies burn tokens

The main reason for burning cryptocurrencies is to improve the value of other coins that are still in circulation. Most coins have a finite and specific total number of coins that should be in circulation. If the demand for a particular coins remains constant, the value of the coins should increase because the supply is limited. The notion is derived from the law of demand and supply. If there are fewer coins to satisfy the overall market, the currency will become more valuable and desirable. Increased demand and a limited supply are noted by a constant increase in the cryptocurrency price. However, companies should realize that token burning is not a guarantee that the price of the remaining coins will improve. Regardless of the number of coins in circulation, the value of cryptocurrency coins is determined by demand and supply, or the amount of money that investors can pay for a coin.

Benefits for Token Holders

The main benefit of token burning is increasing the value of the remaining tokens. The lower the supply of tokens on the exchanges, the higher the value of the existing tokens. The value of tokens is highly dependent on demand and supply. Burning the tokens ensures that the company minimizes the long term demand for the remaining coins and making it attractive for investors in the long term.
All in all, token burning creates scarcity that influences market capitalization. The main objective is to improve investor value.
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$ NEK Token Burning Mechanics
Why do companies burn tokens
Benefits for Token Holders