Token Burn
Permanently destroying tokens, reduces supply.
A project sends some of its tokens to a 'dead' address that nobody has the keys to (e.g. 0x000...dead). The tokens still exist on-chain but no one will ever spend them, they're destroyed. Goal: reduce circulating supply, raise the value of the rest. BNB burns part of Binance profits every quarter. Since EIP-1559 (2021), ETH automatically burns part of gas fees, at high network activity ETH becomes deflationary.
In plain words
A project sends its tokens to an address nobody can ever pull them from, effectively destroying them. Fewer tokens in circulation = theoretically higher value for the rest. BNB burns millions every quarter, ETH automatically burns part of fees. In some months ETH supply shrinks net, even though new ETH is being emitted.
Example
ETH since EIP-1559 (Aug 2021): in November 2021 alone 1.4M ETH was burned = $5.5B.
Also known as: burn