Burning simply refers to the permanent destruction of some quantity of Eda Coin (abbreviated EDA) so that the overall coin supply is reduced.

Reason for Burning:

The reason for burning some amount of $EDA is to ensure scarcity of $EDA and hence drive up the market price.

Since the Market Price of a coin is inversely proportional to its Circulating Supply (see the equation below), a reduction in the circulating coin supply will most likely result in an increase in the market price of the coin.

Price = Market Capitalization / Circulating Supply

In other words, the burning of $EDA ensures scarcity by decreasing its total and overall circulating supply, which should drive up the market price.

The Process of Burning $EDA:

Burning of $EDA is quite straightforward. It requires sending the specified amount of $EDA coins to a Dead Wallet, which is also called a Burnt Wallet.

A Dead Wallet is a cryptocurrency wallet that has no private key so that any coin that enters into it is lost permanently. Thus, when some $EDA coins are sent into a Dead Wallet, it means the coins have been permanently destroyed and will no longer be part of the $EDA circulation.

$EDA Burn Wallet Address:

The following is the public address of the $EDA burnt wallet:

0x000000000000000000000000000000000000dEaD

Amount of $EDA for Burning:

$EDA has been slated for sequential burning as follows:

(a). At Deployment

At the deployment of $EDA on the BNB Smart Chain, 20% $EDA (that is, 20 billion EDA coins) were permanently burnt. This has reduced the Total Supply of EDA to 80 billion.

You can see the 20% burnt $EDA here… Burnt $EDA

(b). Progressive Burning

In addition, 10% of $EDA has been set aside for progressive burning within the next 60 months (5 years).

Who Can Burn $EDA:

(1). Developer’s wallet can burn EDA.

As stated above, 20% once-off burnt was initiated at deployment on BNB Smart Chain from the developer’s wallet.

EdaFace Team will be initiating further progressive burning within the next 60 months (5 years).

(2). Anyone can burn his EDA coin from his wallet

In addition, anyone can burn part of his $EDA accumulation by sending it to the $EDA burnt wallet address to decrease the overall circulating supply and thus drive up the price.

The reason why such individual burning is encouraged is that ultimately the burnt executor will benefit from the resultant increase in market price, which will compensate for the reduction in his $EDA stock supply.