burn rate
- noun
- Jargon
- After the hard fork, developers adjusted the protocol's burn rate to slow token deflation.
Examples
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The burn rate is high.
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The team published the monthly burn rate showing how many tokens were permanently removed.
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Investors watch the token's burn rate to judge whether scarcity will increase market value.
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Can you explain the burn rate for this project?
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The company's burn rate increased sharply after they expanded their operations, indicating significant spending on new projects.
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To assess the sustainability of a cryptocurrency, investors often analyze its burn rate to understand how quickly tokens are being removed from circulation.
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Monitoring the burn rate of a token can provide insights into its long-term viability and supply management in the market.
Antonyms
Surface Forms
Morphology
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
In cryptocurrency, burn rate uses the image of tokens being burned and thrown away. Burn means coins are destroyed and rate shows how many are destroyed over time, so it means 'how fast tokens are removed from circulation'.