# Burning

> Permanently destroying tokens by sending them to an address nobody can spend from. Reduces supply.

Canonical URL: https://business.fudfomo.co/glossary/burning
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Burning is the act of permanently removing tokens from circulation. The standard method is to send them to a wallet address that has no known private key, so nothing can ever be spent from it.

Projects burn tokens for many reasons: as part of automatic fee mechanisms (like Ethereum after the EIP-1559 upgrade), to reward holders by tightening supply, or to clean up after a mistake. Burns are visible on the blockchain and can be checked.

## Related terms

- [Tokenomics](https://business.fudfomo.co/glossary/tokenomics): The economic design of a token: total supply, how it is distributed, and how it changes over time.
- [Circulating Supply](https://business.fudfomo.co/glossary/circulating-supply): How many coins or tokens are actually in the market right now and free to trade.
- [Ethereum](https://business.fudfomo.co/glossary/ethereum): A blockchain that lets developers build apps and issue tokens. Often called a programmable money platform.

## See the full catalogue

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