What Is Token Burn?
Definition
Token burning is the permanent, irreversible destruction of cryptocurrency tokens — reducing the circulating supply and making remaining tokens scarcer.
Burning tokens means sending them to an address from which they can never be recovered. On Solana, this uses the SPL Token Program's burn instruction. On Ethereum and Base, tokens are typically sent to the zero address (0x0000...dead) or a dedicated burn function in the contract.
- Deflationary pressure: Reducing supply can increase the value of remaining tokens (basic supply/demand economics)
- Trust signal: Shows the creator is committed to reducing supply rather than selling
- Tokenomics: Many projects burn a percentage of tokens periodically as part of their economic model
Token burning is distinct from LP burning. Burning LP tokens locks liquidity permanently. Burning regular tokens reduces the circulating supply.
CoinDevTools supports burning SPL tokens on Solana and ERC-20 tokens on Ethereum and Base.
Related Terms
SPL Token
An SPL token is the standard fungible token format on the Solana blockchain, equivalent to ERC-20 on Ethereum.
ERC-20 Token
ERC-20 is the most widely used token standard on Ethereum and EVM-compatible chains, defining how fungible tokens are created and transferred.
LP Tokens (Liquidity Provider Tokens)
LP tokens represent your share of a liquidity pool. They can be redeemed to withdraw your deposited assets or burned to permanently lock the liquidity.