Burncoin Built to burn
FAQ

Frequently Asked Questions

What is Burncoin?

Burncoin is a deflationary token on Solana that incorporates a burn tax on every swap and wallet transfer. It aims to model a scarce, limited supply coin inspired by Bitcoin, with tokenomics driven by burning supply over time.

What is the burn tax?

Burncoin has a 4.20% burn tax on every wallet transfer and decentralized exchange (DEX) swap. This tax is enforced via Solana Token Extensions, ensuring the burn is baked into the protocol.

How does the burn tax work?

When $BURN is transferred or swapped on a DEX, 4.20% of the amount is automatically burned and permanently removed from the supply. This reduces the total circulating supply over time.

Where does the 4.20% fee go? 🔥

$BURN uses Solana Token Extensions to apply a 4.20% burn fee on every DEX swap and wallet transfer. There is no traditional "burn wallet." Instead, the fee is locked so that only Solana's default burn address can withdraw it, meaning no one can ever access or recover the burned tokens.

That means every fee is permanently burned and gone forever.

Does the 4.20% burn on all DEX buys, DEX sells, and wallet transfers mean the price of $BURN will go up?

No, the price of $BURN is independent of supply burns. There are no expectations that the price will increase due to the burn mechanism. The 4.20% burn tax built into the contract simply means that $BURN will become more scarce with every DEX swap and wallet transfer.

How do I know the burn works? Do any other projects use it?

Check out Catwifhat. It has burned more than 60% of its supply using the same Solana technology. Whereas $CWIF uses a 4.0% burn tax, $BURN uses a 4.20% tax. Few projects have implemented this burn system due to the technical skill required. This is real, on chain deflation.

Is there Mint Authority, Freeze Authority, or Fee Withdraw Authority?

No. There is no Mint Authority, Freeze Authority, or Fee Withdraw Authority for Burncoin. This means that the 21 million Burncoin minted is the maximum that will ever be in circulation.

Why was 1 million $BURN allocated to the liquidity pool?

None of this is financial advice.

At launch, 1 million $BURN (4.76%) was paired with $SOL and permanently locked to form the initial liquidity pool. This amount was carefully chosen, not randomly.

Many memecoin traders prefer smaller liquidity pools because they allow for greater price volatility, both up and down. In contrast, tokens with overly large liquidity pools and low market caps, like $CWIF at one point ($1M+ LP vs $3M market cap), often struggle to attract traders seeking price movement.

$BURN was designed to strike a balance. While some liquidity is necessary for stability and confidence, too much can hinder growth, especially for deflationary tokens like Burncoin, where coins outside the liquidity pool are burned, but the pool's supply remains balanced.

The result is a leaner liquidity pool that supports trading while allowing $BURN room to move and burn outside the pool. This intentional design choice aligns with what many in the memecoin community value.

Is Burncoin related to Bitcoin?

There is no relation of Burncoin to Bitcoin. Burncoin was created as a play on Bitcoin with a deflationary twist using a 4.20% burn tax and Solana Token Extensions.

Should I expect to profit if I buy $BURN?

Like the price of most cryptocurrencies, $BURN is expected to be volatile. It is a smaller, less established coin, and its future depends heavily on community support. There is no guarantee of profit.

Can future supply burns be predicted?

No, there is no way to predict future supply burns for Burncoin. The 4.20% burn tax is applied to every on chain transaction, including DEX buys, DEX sells, and wallet transfers. As a result, the total amount burned depends entirely on the volume of these transactions, which is inherently unpredictable and driven by market activity.

How can I help?

The Burncoin community is active and growing every day. Here's how to get involved: