Economics
Beginner
What is
Burn?
The process of permanently removing cryptocurrency tokens from circulation, usually by sending them to an unspendable address.
The process of permanently removing cryptocurrency tokens from circulation, usually by sending them to an unspendable address. Burning tokens reduces supply and can be used to increase scarcity, manage inflation, or as part of a protocol's mechanism.
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Frequently Asked Questions
Questions about Burn
Common questions about this topic
How to build DeFi on Ergo?
Building DeFi on Ergo starts with understanding the eUTXO model and ErgoScript. Unlike account-based chains, Ergo's box model provides deterministic execution, no MEV by design, and predictable gas costs. Use Oracle Pools for price feeds, and leverage existing patterns from Spectrum Finance and SigmaUSD.
How-to
DeFi
What is eUTXO and how does it work?
eUTXO (Extended Unspent Transaction Output) is Ergo's smart contract model that extends Bitcoin's UTXO with programmable logic. Each 'box' contains ERG, tokens, data registers, and a guarding script. Transactions consume boxes and create new ones, enabling deterministic execution, parallel processing, and no reentrancy attacks.
Explainer
Technology
How to escape financial repression with Ergo?
Ergo provides tools for financial sovereignty: self-custody with no third parties, censorship-resistant transactions via PoW, optional privacy with Sigma Protocols, and programmable money without permission. Unlike VC-backed chains, Ergo has no central authority that can freeze funds or comply with sanctions. Your keys, your coins, your freedom.
Solution
Philosophy
Why does Ergo's fair launch matter?
Ergo had no pre-mine, no ICO, no VC allocation. 100% of ERG comes from mining. This means no insiders dumping on you, no VCs controlling governance, no foundation with majority stake. Fair launch creates genuine decentralization - the network belongs to miners and users, not early investors seeking exit liquidity.
Philosophy
Philosophy