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Crypto Terms Explained: Minting, Burning, Staking & More
May 2024•1 min read
| Term | Definition | Example |
|---|---|---|
| Minting | Minting is the process of creating new tokens on the blockchain. | When you create a token on MintCoin.fun, you're minting your supply for the first time. |
| Burning | Burning means permanently removing tokens from circulation. | A project might burn 10% of all tokens to reduce supply and increase scarcity. |
| Freezing | Freezing disables the movement of tokens in certain accounts. | Used for liquidity pools or compliance, but usually revoked for trustless tokens. |
| Staking | Staking means locking tokens to earn rewards and support a blockchain network. | Stake SOL to help secure the Solana network and earn passive income. |
| Revoking Authority | Revoking removes control over token features like minting or metadata changes. | Revoking mint/update/freeze makes your token truly decentralized. |
| Tokenomics | Tokenomics refers to the economic design of a token, including supply and utility. | A project may reserve 40% of tokens for rewards and burn 5% monthly. |
| Liquidity Pools | Liquidity pools allow tokens to be traded by pairing them with another token. | Add your token to a SOL pool on Raydium for instant swaps. |
| Airdrops | Airdrops are free token distributions to build community or reward users. | Distribute your token to Discord members to boost engagement. |