• 11
  • Jan

What does Coin burn mean?

Coin burning is the process of permanently removing coins from circulation, reducing the total supply. This process is followed by other cryptos as well in order to maintain the balance between supply and price.

Some of the cryptos perform periodic Coin Burns events through the use of a smart contract function known as burn function. The amount of VOZ coins to be burned is based on the number of rewards they will be giving in the market before coming on the exchange with in a certain period of time. So, after each quarter, VOZ COIN will burn VOZ according to the overall rewards distributed.

There are still many people who do not understand how Coin Burns are executed. Going ahead, we have explained the process in detail for your better understanding.

How does it work?

    A coin holder will call the burn function, stating that they want to burn a nominated amount of coins.
    The contract will then verify that the person has the coins in their wallet and that the number of coins stated is valid. Only positive numbers work.
    If the person does not have enough coins, or if the stated number is invalid (e.g., 0 or -5), the burn function will not be executed.
    If they do have enough, then the coins will be subtracted from that wallet. The total supply of that coin will then be updated, and the coins will be burned.

If you execute the burn function to burn your coins, they will be destroyed forever. It is impossible to recover coins after they are burned.

Once the coins/tokens went through burning process, this function will permanently remove a nominated number of coins from the total supply. This coin burn event is recorded as a transaction on the blockchain, meaning that they are 100% transparent and anyone is able to verify the that these coins have been destroyed. Once these coins are burned, they can never be recovered again. As soon as the scheduled burning process is completed, VOZ Coin will make an official announcement that specifies the amount of VOZ that were burned (based on the coins distributed as rewards in the particular quarter). One can verify all the Coin Burn transaction on the VOZ blockchain explorer. The burning transactions are public, irreversible and permanently recorded on the blockchain.