What is a token burn?

Simply put, you burn a coin or token when you remove it from circulation permanently. This is done by sending coins or tokens to an address that can receive but can not send crypto. This is not to be confused with a dead wallet. Dead wallets are inactive for multiple years and do not send or receive transactions.

Instead, you would send a token to a null address if you want to burn it. A null address is made specifically to receive tokens that are being removed from circulation.

For example, a popular burn address on Ethereum and EVM-compatible chains (e.g., Arbitrum, Polygon, BSC, etc.) is 0x000000000000000000000000000000000000dEaD. You will notice that the last four letters of the ciphertext end with “dEaD.” This is not a coincidence. The aforementioned null address is also a vanity address, which means that the creator specifically chose those parameters. Nevertheless, it is an homage to the fact that it is a burn address.

You use multiple addresses to burn tokens. If you send cryptocurrency to incompatible addresses, you permanently remove them from circulation