What Are Burnt Tokens?

• Definition: Burnt tokens are tokens that are permanently removed from circulation, usually by sending them to an inaccessible wallet.
• Why They Matter:
  • Scarcity: Reducing the supply can increase the value of remaining tokens.
  • Trust: Projects that burn tokens show commitment to long-term value.

How to Identify Meme Coins with Strong Tokenomics

1. Check the Burn Mechanism:
   • Example: Shiba Inu’s burn wallet reduces the total supply over time.
   • How to Check:
     1. Go to Solscan or Birdeye.
     2. Search for the meme coin’s contract address.
     3. Look for a burn wallet (e.g., a wallet with a large balance and no outgoing transactions).
2. Analyze Tokenomics:
   • Total Supply: Check the total and circulating supply.
   • Distribution: Ensure tokens are fairly distributed (avoid coins where the top 10 wallets hold > 50% of the supply).
   • Utility: Look for coins with a use case (e.g., staking, governance).

Tools for Analyzing Tokenomics

1. Solscan:
   • Website: Solscan
   • How to Use:
     1. Search for the meme coin’s contract address.
     2. Check the “Holders” tab to see token distribution.
     3. Look for burn wallets or large holdings.
2. Birdeye:
   • Website: Birdeye
   • How to Use:
     1. Search for the meme coin.
     2. Check the “Tokenomics” tab to see supply and distribution.
3. RugDoc:
   • Website: RugDoc
   • How to Use:
     1. Search for the meme coin.
     2. Check the audit and risk rating.

Insider Tips for Identifying Strong Tokenomics

• Look for Deflationary Mechanisms: Coins with burn mechanisms or deflationary features tend to perform better.
• Avoid Scams: Use RugDoc to check for audits and avoid high-risk projects.
• Check Community Engagement: Strong communities often indicate long-term potential.