A Token Burn or Coin Burn is an event where a token issuer removes an amount of tokens from circulation, often by transferring a number of tokens to a burn address (a cryptocurrency address that is factually inaccessible).
When tokens are burned, the circulating supply of that token decreases.
A lower circulating supply means the token's total market capitalization (
price of one token * tokens in circulation) decreases as well.
For a token to maintain the same market capitalization that it had pre-burn, the price of one token must increase. Therefore, holders of the token generally benefit from tokens being removed from circulation.