To burn a token means to permanently remove it from circulation by sending it to an unrecoverable (or “burn”) address. Once burned, that token can no longer be used, traded, or transferred.

Burning can happen for several reasons, such as supply management (projects may burn tokens to reduce overall supply and increase scarcity) or redemption events: when a user redeems a tokenized position (for example, withdrawing their position from a vault, by swapping a vault token for stablecoin), the redeemed token is often burned to reflect that it has been settled and no longer represents a live claim.

All burn transactions are recorded on-chain, ensuring full transparency and traceability.