What does it mean to burn a token and why do they burn it?

As you can see in the picture, one GCWine transaction was carried out: the GCWine token was sent to a very strange address containing zeros in the front and “dEaD” (0x000000000000000000000000000000000000dEaD) at the end. What does this mean?

This is an address, the private key of which no one has and therefore no one has access to this address. This means, the tokens found on that address are literally dead and cannot be used by anyone for anything.

As you can see, one GCWine holder came up with an idea to burn the GCWine tokens and sent them to this address.

Thich is very sad because we do not plan to burn the GCWine tokens.

As a rule, projects themselves burn their tokens, i.e., they send the tokens to the above-mentioned “dead” address so that the total number of the tokens decreases and the price increases, in accordance with the principle of demand and supply. Since many projects do not have a real product and are unable to bring utility for the token through its integration with the real product, they burn their tokens and this has a positive effect on the price of the token. So, this is why various tokens are often burnt. If you search for this “dead” address in the blockchain, you will see that the tokens worth 1 billion USD have been burnt.

The GCWine team does not plan to burn the GCWine tokens.

We also encourage the GCWine holders not to burn the GCW tokens either, because there is a real product behind GCWine: it’s wine. We also have real business through which the GCWine token will be used in real life. You will be able to buy wine as well as other kinds of food and beverages with the GCWine token. Since the GCWine project has global plans and aims to capture the global food and beverages industry, which is one of the largest markets, that is why such a large number of GCWine tokens is necessary to fully cover and secure this market and function as a payment token.