Glossary Term
Burn
"Burn" refers to the process of permanently removing tokens from circulation, making them unusable and effectively reducing the total supply. On Solana and other blockchains, burning is used to control inflation, increase scarcity, or as part of specific tokenomics strategies.
Beginner
General
Crypto Terminology
Burn: what is it?
Examples
- 1
A meme coin on Solana sends 10% of transaction fees to the burn address at each swap.
- 2
Solana NFT project burns tokens as part of a limited edition reveal event.
- 3
DeFi protocol on Solana burns unclaimed rewards after a staking period ends.
Common Use Cases
Deflationary mechanisms to help support token price.
Removing unsold or excess tokens after an ICO or IDO.
Decreasing NFT supply to drive rarity or enable special features.
Gamified community events (e.g., “burn to mint” new assets).
Pro Tips
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Always verify burn addresses on the official project site or documentation.
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Use Solana explorers to track and confirm burn transactions.
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Don’t mistake accidental transfers to incorrect addresses as intentional burns.