Calculation method
How MoonMath calculates token burn
Token Burn Calculator — What changes when supply is burned?
The formula
Burned tokens are supply × burn percent, and the market cap afterwards is the reduced supply valued at the same price. The price is held constant by construction, so the market-cap change equals the burn percentage exactly.
What it reads
- Current circulating supply and the percentage to burn
- The current price as observed
- Pool liquidity, for the depth-per-token ratio before and after
What it assumes
- The burn removes circulating tokens held outside the AMM, so pool reserves and the spot price do not move merely because the supply figure changed
- Reported pool liquidity is unchanged by the burn
- The burn is instantaneous and no trading reaction is modelled
What this does not establish
- It does not predict a price increase from a burn — the price after equals the price before by construction
- The market-cap change is an accounting restatement of the supply reduction, not a market outcome
- It says nothing about a burn that removes tokens from the AMM reserve itself, which would move the invariant
- Liquidity per circulating token is a ratio of reported liquidity to supply, not an executable depth measure
Run it
Calculate how removing tokens from circulating supply changes supply statistics and market cap at the observed spot price. A burn is not a new purchase and does not automatically move the pool price.
Open the Token Burn calculatorHow the market itself works
This page describes MoonMath's arithmetic. The mechanics section describes the market: how an order book forms a price, why order-book depth is not the same thing as pool liquidity, and what a public book does and does not let you observe.
Read the market mechanics