A token burn permanently removes tokens from use. To understand its effect on supply, you need the amount burned, the supply you are comparing it with, and any new tokens created over the same period.
How tokens are burned
Some burns happen through a contract or a network rule that destroys tokens. Others send tokens to an address from which they cannot be spent. The transaction and the rules of that network establish whether the removal is permanent. Moving tokens into a treasury or locking them temporarily does not, by itself, establish a burn.
How much of the supply was burned?
A billion tokens is a small share of a supply measured in trillions. Divide the burn amount by the supply, then multiply by 100 to express it as a percentage. These examples use the supply immediately before each burn:
| Example | Burned | Supply before | Share removed |
|---|---|---|---|
| Large-unit token | 1 billion | 500 trillion | 0.0002% |
| Smaller supply | 1 million | 100 million | 1.0000% |
Our asset ranking divides total tracked burns by the asset's all-time peak protocol supply. For fixed-supply assets, we use the maximum created at launch. For assets whose supply changes, we use the highest observed supply supported by the source records. Each tracker explains its supply reference and coverage.
Burns, new issuance, and price
A network can burn tokens while its supply grows. If it creates 1,000 tokens and burns 600 during a day, supply increases by 400, assuming no other supply changes. The burn total and the net supply change answer different questions.
Price also depends on buyers, sellers, and the amount available to trade. A burn total alone cannot tell you what the remaining tokens will be worth. The dollar values shown on our trackers multiply burned tokens by the latest available price; they do not measure money spent on a burn or the tokens' value when it happened.
Reading changes in the burn rate
A burn rate can rise sharply from a small starting amount. Going from 10 tokens burned yesterday to 100 today is a 900% increase, but the additional amount is 90 tokens. Check the amounts and the dates behind the percentage, then look at whether a single large burn accounts for most of the change.
Checking a burn record
- Open the linked transaction, block, or official daily record.
- Check the network and token contract. A ticker alone may refer to more than one asset.
- Confirm how the tokens became permanently inaccessible or were destroyed.
- Check the token's decimal places when converting the raw amount into tokens.
- Use the same date range when comparing burns with new issuance or other supply changes.
- Check which supply figure is used for the percentage and whether the recorded history has gaps.
Reading a tracker total
Each tracker includes a methodology section below its data tables. It lists the included burns, calculation rules, coverage dates, and adjustments. Read it alongside the total, especially when comparing assets: some records describe individual transactions, while others report a day's activity or an opening balance.