Burn

How it is used

Used as a verb and a noun: burn tokens, a token burn, burn address, burn mechanism. Projects announce burns to reduce supply, and since 2021 Ethereum has burned part of every transaction fee. A burn only reduces supply; it says nothing certain about the future price.

Example sentences

1. The team burned 10 percent of the total supply, and anyone can check the burn on a block explorer.

2. When customers redeem their stablecoins for dollars, the issuer burns the same amount.

Common collocations

• burn tokens
• token burn
• burn address
• burn mechanism
• mint and burn

Related terms

• mintTo create new tokens or NFTs by calling a smart contract and recording them on the blockchain for the first time. As a noun, a mint is the act or event of creating them.
• circulating supplyThe number of coins or tokens that are currently available and moving in the market, not counting those that are locked, reserved or not yet created.
• tokenomicsThe economic design of a token: how many exist, how they are created and distributed, who receives them and when, and what they can be used for.
• EthereumA blockchain launched in 2015 that can run smart contracts and applications, not just payments. Its own currency is called ether (ETH), and it has used proof of stake since 2022.
• gas feeThe fee paid to the network to process a transaction or run a smart contract, especially on Ethereum and similar chains. It goes up when the network is busy.

This word in other fields

The same English word can have a different meaning in another field:

• burn · Emergency Medicine & First Aid

More terms: Coins & Tokens

• cryptocurrency
• Bitcoin
• token
• stablecoin
• altcoin
• ERC-20
• airdrop
• ICO
• satoshi