Memecoin Guide
    ||
    Back to Glossary

    Token Burn

    Technical

    Sending tokens to a dead address so they're removed from supply forever.

    Definition

    A burn destroys tokens by sending them to an address no one controls (typically 0x...dEaD or the zero address). Supply drops, and if demand stays constant, price math works in favor of remaining holders. Burns can be one-off (team destroys its allocation), automatic (a % of every transfer), or programmatic (buyback-and-burn).

    Burns only matter in proportion. Burning 1% of a hyperinflationary supply is theater. Burning 50% of a team allocation is meaningful — assuming the remaining 50% isn't still enough to dump the chart.

    Examples

    • Team burned 40% of their allocation to the dead address — verifiable on-chain.

    • 2% of every transfer is burned. Nice on paper, irrelevant at low volume.

    • 'Big burn announced' and the chart didn't move — market saw the gimmick.

    Explore all 40 terms in our glossary

    Back to Glossary