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💸 Spending speed 🔥 Token destruction speed
burn rate

burn rate

1 6.5
The speed a company spends money each month
  • noun
  • /bɜrn reɪt/
  • Specialized
translation icon : tasa de quema
  • Take your upfront costs, add (monthly burn rate * time calculated in step 1).
  • a high burn rate

So wealth is about shifting your mindset from spending money by reducing your burn rate and buying time.

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Examples

  • With Wework's high cash burn rate and with VC money drying up, the company was going to have to go public soon.

  • "Plainly, a company has to know what its burn rate is," says San Francisco lawyer Robert Eisenbach.

    Academic text (2001)

  • And I look at what their burn rate is essentially per month and the income.

  • You know, the, the Silicon Valley crash and burn rate is pretty high.

  • If you want a place that is prohibitively expensive and will increase your burn rate, London is the place to be.

    Blog text (31)

  • So wealth is about shifting your mindset from spending money by reducing your burn rate and buying time.

    Vusi Thembekwayo

  • San Francisco isn't exactly cheap, and yet people cluster there, increasing their burn rate.

    Blog text (31)

  • Budgeting, you can do a quick "how much time do I have to survive" analysis at any time by simply knowing how much money you have in the bank and what your monthly burn rate is.

    Blog text (12)

  • The startup needs to closely monitor its burn rate to ensure it does not run out of funds too quickly.

  • Investors want to see the company's burn rate as part of their financial analysis to assess the sustainability of operations.

Antonyms

profit
  • Specialized
∞ 2.0

Money left after you pay all costs and taxes

savings
606 1.0

Money put aside, often in a bank, to use later or for emergencies

Surface Forms

burn rate singular
burn rates plural

Morphology

burn + rate

The meaning is directly compositional: 'burn' (to consume or destroy) combined with 'rate' (measured speed/frequency) yields 'the speed at which something is burned or removed.' This is a common, cross-domain formation (e.g. "startup burn rate"), so a B1 learner who knows the constituents can infer the basic meaning even if they might miss the specific crypto nuance of tokens being permanently removed from circulation.

Etymology

Burn rate creates the picture of money being set on fire. Burn shows cash disappearing fast and rate shows how quickly this happens, so it means 'how fast a company spends its money'.