Sending tokens to burn address 0x00 without decreasing total supply sum?

In my contract where I'm going to burn tokens by sending them to 0x00 address instead of using burn() function,
I saw some devs tells by this method a one have to decrease the total supply sum of the tokens once using the method of burning through sending tokens to address(0)

Why should I do that ? and what happens if I did not ?

Although both burning and transfering X tokens to 0x00 address end up increasing the balance of 0x00 by X, the former reduces the total supply by X as well, and the latter does not, in which case, the X tokens are still considered theoretically possible to be transferred out.

If X is significant, the scarcity that could have been created by burning is not able to be created by tranferring. It may have an impact on the future perspective of token prices.

1 Like

As per my understanding is burning tokens by sending them to address(0) (depends on the sum of the transfered) without decreasing the total supply will eventually make the price goes higher ?
but when we do through burn() nothing happens ?
is that right ?

Burning tokens can reduce the total supply and hence create a perception that there is an increasing scarcity. In early days, when a large amount of Bitcoins were lost for any reason, the market reacted positively for the same reason.

1 Like