StakePoint
Solana DeFi Glossary
Definitions of key terms used in Solana DeFi, token locking, LP locking, and staking. Published by the StakePoint team.
Token Burn
The permanent removal of tokens from circulation by sending them to an unrecoverable address.
Definition
Token burning is the process of permanently removing tokens from circulation. On Solana, tokens are burned by sending them to a null address or by using the SPL token burn instruction, which reduces the total supply permanently.
Projects burn tokens for various reasons — to reduce total supply and create deflationary pressure, to signal commitment by burning team allocations, or as part of a buyback-and-burn mechanism funded by platform fees.
Token burns are irreversible. Once burned, tokens cannot be recovered. Burns are publicly verifiable on-chain via block explorers like Solscan.
StakePoint & Token Burn
Token burning is an alternative to token locking. While locking removes tokens from circulation temporarily, burning removes them permanently. StakePoint provides token locking — not burning — but both are used as tokenomics tools by Solana projects.
Related Pages
Frequently Asked Questions
What is a token burn?
A token burn is the permanent removal of tokens from circulation by sending them to an unrecoverable address, reducing total supply.
What is the difference between token burning and token locking?
Token burning permanently removes tokens from circulation. Token locking temporarily removes them until the unlock date, after which they can be claimed.
Related Terms
Circulating Supply
The number of tokens currently available and tradeable in the market.
Tokenomics
The economic design of a token including supply, distribution, and incentive mechanisms.
Token Locking
The process of transferring tokens into a smart contract until a fixed unlock date.
SPL Token
The standard token format on the Solana blockchain.
Solscan
A block explorer for the Solana blockchain that allows on-chain verification of transactions and accounts.