All termsTokens and Blockchain InfrastructureWorth knowing
Burning
Burning is the process of permanently removing tokens from circulation, usually by sending them to an unusable address or using a smart contract function that destroys them. In some RWA structures, tokens may be burned when an investment is redeemed or canceled.
Why it matters to you
Burning can help keep the number of tokens in circulation aligned with the structure they represent. For example, if tokens are redeemed for the underlying value, destroying those tokens can prevent them from continuing to circulate after the associated claim has ended.
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