---
title: Token Burning
url: "https://www.unknowngravity.com/en/glosario/quema-de-tokens"
site: Unknown Gravity
published: "2026-09-21T11:55:13+00:00"
modified: "2026-09-21T11:55:14+00:00"
language: en-US
description: "Burning tokens is destroying them forever: they are sent to an address nobody holds the key to and leave circulation verifiably."
section: "Home > Token Burning"
---

# Token Burning

GLOSSARY · BLOCKCHAIN & WEB3

What burning tokens is: sending tokens to an unrecoverable address to reduce supply, what it is used for and what it does not fix.

WHAT IS IT? · FOR DUMMIES

**Burning** tokens is destroying them forever: they are sent to an address nobody holds the key to and leave circulation verifiably. Less supply with the same demand suggests more value per token — that is the theory; the practice depends on the demand existing.

WHAT IS IT? · PRO

The serious uses of burning: protocol mechanisms (burning part of the fees, as Ethereum does with EIP-1559), buyback-and-burn programmes tied to real revenue, and [tokenomics](/en/glosario/tokenomics) adjustments after redesigns. Burning is verifiable on-chain — anyone can check the address and the amounts.

What it does not fix: a burn does not create demand nor turn a broken token economy into a good one — it reduces the denominator, it does not improve the numerator. And if the token's sales pitch is "we will burn so it goes up", the project is describing a promise of appreciation, with the regulatory implications that drags along.

## 01 / Key points

- Verifiable destruction of tokens by sending them to an unrecoverable address
- Uses: protocol fees, buyback and burn, tokenomics adjustments
- Reduces supply; does not create demand
- Promising burns "so it goes up" has a regulatory reading

## 02 / Advantages

- Verifiable on-chain by anyone
- Ties the token to real revenue in buyback schemes
- Legitimate monetary-policy tool of a protocol

## 03 / Disadvantages

- Does not fix a broken economy
- Frequently used as marketing theatre
- Irreversible: burning mistakes cannot be undone

This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu).