The most straightforward reason for a coin burn is to reduce the number of coins in circulation or to limit the supply.
But, that’s not the only reason.
Cryptocurrency projects undertake the burn process so that:
- There can be a more effective consensus mechanism
- A safeguard against Distributed Denial of Service Attack (DDOS) can be put in place,
- Spam transactions can be prevented
- A long-term commitment from the cryptocurrency project can be assured