Burn
Also known as: Token Destruction, Deflationary Burn, Supply Reduction
The process of permanently removing tokens from circulation, reducing total supply and often increasing scarcity.
Burning is a mechanism by which cryptocurrency tokens are intentionally and irreversibly removed from circulation. This is typically done by sending tokens to an address with no known private key, known as a burn address. Burn events are used for supply control, deflationary strategies, and rewarding holders indirectly by increasing token scarcity. Projects may burn tokens manually (e.g., via buybacks) or automatically (e.g., through transaction fees or smart contract logic). Burning can also play a role in governance models and Layer 1 tokenomics such as Ethereum’s EIP-1559.