Glossary
Token Burn
Destroying tokens permanently by sending them to an unspendable address, reducing total supply.
A burn sends tokens to an address that no one controls the key for, so the supply cannot move again. Fees paid in a token and then destroyed work the same way.
It reduces supply, which is mechanically supportive for price if demand holds. It does not by itself create demand, and it says nothing about where the remaining supply sits.
A burn that pays for real activity is closer to a real buyback than one that burns from an allocation created for that purpose. Check where the burned tokens came from before treating a burn announcement as news.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.