NFT BURNING BY NFT CRITICS
Do NFTs get burnt?
The term “NFT burning” summons up ideas of an investor lighting a match to real money. Of course, digital arts are available in virtual form since this is not physically viable. Token burning is a deliberate action performed by the developers/artists to “burn” or remove a specific number of tokens from the total collection from circulation. Burning tokens help various purposes, the most common of which is to reduce inflationary pressures in the market.
How do creators burn an NFT?
Token burning can happen in several ways, even though the premise is simple. The objective is to lower the total quantity of access tokens.
A token burning takes place in the following order in general:
- An NFT holder can access the burn feature and mention the number of NFTs they want to burn.
- The contract will then check to see that the individual has the gas fees in their wallet and if the specified number of tokens is correct.
- If you do not have enough currency to cover the gas fee, the transaction is invalidated, and the NFT is not burned. If the mandated gas fee is available in your wallet, then you must sign the contract approving the transaction before your NFT is gone forever.
- The NFT burn transacts as a public, irreversible, and permanent transaction on the blockchain ledger. The blockchain documents this transaction, and the NFT is deemed no longer functional.
- Moreover, the fees charged on trades do not go to a central authority; instead, in the case of most marketplaces, the prices serve as a burning means.
Burning tokens also instils trust and reliability, especially in the early stages of an NFT’s life cycle. Some creators burn unsold tokens after an offering to establish greater accountability and protection to investors. If you are an owner, you need to remember that token burning is expensive and can include pretty high gas fees.
Isn’t this comfortable and profitable? It indeed is!
