As a result, over 1,000 WZRDS have been burned of 10,000 total, while over 50% are staked. At one point the floor price had spiked from 0.15 ETH on July 8 to 3.2 ETH on July 12.
However, the heightened floor price was quick to fall just two days after mooning, where it now sits at a measly 0.02 ETH floor
2. Rectify errors
Sometimes NFT projects mess up. That or they want to avoid potential problems. Regardless of the reason, project creators turn to the burning mechanism to rectify these issues.
Perhaps one of the most notable burns to date comes not from an NFT project, but from Tether. In 2019, the US dollar-pegged stablecoin accidentally created an extra $5 billion of USDT. To rectify the issue, they immediately burned the tokens.
By removing them from circulation, Tether was able to fix their oversupply problem instantly.
Although using a burn address to rectify errors seems to be more common in the cryptocurrency space, it’s the only way you would be able to fix similar supply issues with NFTs as well.
3. Gamified trading
Some NFT brands have implemented a burn mechanism to incentivize holders to make a choice between keeping their NFT or trading it for another asset of equal or potentially greater value.
A perfect example of this gamified strategy can be found in Gary Vaynerchuk’s Book Games NFTs. This fun and innovative game originally started with a total token supply of 125,000 tokens.