Why burn tokens?

I dont quite get the concept of burning tokens on repayment of a loan as is done in Augmint tokens. I know this is done by banks in a centralised ecosystem as well. But what does burning actually mean? Is it like a devaluing of the currency/token?

enlighten my mind please…:slight_smile:

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When we “burn” tokens, it usually means that a company or person will send the tokens to an unrecoverable address.

By doing this, we would essentially decrease the total supply of that particular token, increasing its value.

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Ah ok, so kind of like inflation control i guess. Yet another reason to do away with banks, however dont think we will ever do away with banks completely.

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Maybe. But we should always have a choice to be our own bank. :slight_smile:

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