Glossary
What is Token burning?
Burning permanently removes tokens from circulation by sending them to an address no one controls, lowering total supply for good.
A burn is irreversible. Tokens are sent to a dead address (such as 0x…dEaD) or destroyed by a burn function, and total supply drops by that amount. Projects burn tokens to reduce supply, prove a portion is gone, or remove liquidity-pool (LP) tokens from circulation.
Burning LP tokens is a common way to lock liquidity: once the LP tokens are burned, no one can withdraw the underlying liquidity from the pool. Monmint can burn both ERC-20 tokens and LP tokens.
Keep reading
Related terms
- Total supplyTotal supply is the number of tokens that currently exist for a contract — every minted token minus every burned token.
- LP tokenAn LP (liquidity-provider) token is a receipt a DEX gives you when you deposit into a liquidity pool; it represents your share of that pool.
- Liquidity poolA liquidity pool is a smart contract holding two tokens that traders swap against; its balances set the price via an automated market maker formula.