Proof of Burn (PoB)

Proof of burn (PoB) means that miners must burn a set amount of cryptocurrency in order to receive block rewards. This is done as an incentive to reduce the number of coins in circulation, and to increase the value of those remaining. PoB is also used to prevent spam attacks on networks.

PoB is necessary as a deflationary mechanism to reduce the number of coins in circulation. When there are too many coins in circulation, the value of each coin decreases. PoB helps to prevent this by incentivizing miners to burn a portion of their rewards.

How Proof of Burn (PoB) Works

PoB works by having miners send a certain amount of cryptocurrency to a designated address. Once the coins have been sent they’re burned, and can no longer be used. In return, the miner receives a block reward.