what is the process of adjusting the supply of tokens by permanently deleting a certain amount to strengthen security or improve utilities
The process is called token burning or simply a token burn. It means permanently removing a set amount of tokens from circulation by sending them to an unusable address or otherwise making them irrecoverable.
Quick Scoop
Token burning is used to reduce supply, create scarcity, and sometimes support token value or improve tokenomics over time. In some blockchain designs, it can also be part of a security or consensus strategy, where reducing circulating supply makes certain attacks harder or signals stronger commitment to the network.
Why projects do it
- Reduce inflation by limiting total supply growth.
- Increase scarcity, which can support long-term value.
- Strengthen confidence in the project’s economic design.
- In some systems, improve security or network resilience.
Simple example
If a project burns 1 million tokens, those tokens are permanently gone, so the remaining tokens make up a smaller total supply. That does not automatically raise price, but it can change market perception and token economics.
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