What does Proof of Burn mean?
Proof of burn is a method for distributed consensus and an alternative to Proof of Work and Proof of Stake. The proof of burn consensus method requires another cryptocurrency, usually Bitcoin, to be destroyed or burned by having it sent to an unspendable address, known as an eater address.
When the Bitcoin is burned the sender receives a set number of other coins in exchange based on the amount of Bitcoin burned.
Proof of burn is said to encourage long term investment in a project, and miners who burn a lot of coins have a better chance of solving the next block in the chain, thus earning even more coins.