Token Burn
Permanently removing tokens from circulation by sending them to an inaccessible address.
In-Depth Explanation
Burns reduce total supply, theoretically increasing scarcity and value per remaining token. Ethereum burns a portion of gas fees (EIP-1559). Protocols may burn tokens from revenue or buybacks. Burns are deflationary but only create value if demand exists—burning worthless tokens doesn't create worth.
Related Terms
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.