Deflationary tokenomics are extremely popular in the meme coin ecosystem. The primary tool to achieve deflation is the "token burn"—sending tokens to a verifiable "dead" address from which they can never be retrieved, effectively removing them from the circulating supply.
The Mechanics of Burning
Tokens are sent to addresses like 0x000000000000000000000000000000000000dead. Because no one knows the private key to this address, the tokens are permanently out of circulation.
Why Burn Tokens?
Reducing the supply, while maintaining or increasing demand, puts upward pressure on the price of the token. It rewards long-term holders by making their share of the total supply larger over time.