2023-08-16 12:01:11
Tokens or NFTs created on the blockchain can be burned, so this is pretty basic information. Burning in itself does not mean “destroying” the token, but sending it to an address for which no private keys exist. A token can only be used if we know the private keys of the address where the tokens are. Private keys cannot be decrypted or recovered if lost. Unless someone doesn’t have the original keywords it was generated from. And there are unique addresses that are mathematically certain to have no private keys. So if we send tokens to such an address, they will no longer be usable, so we took them out of circulation, “burned” them. Any token that can be sent to an address can be burned. In addition, since the transactions on the chain are irreversible, once the token has been sent, there is no going back. Someone voluntarily burns millions of tokens Recently, an interesting little story appeared on ex-Twitter, X in the Arkham account. According to Arkham’s tweets, very interesting transactions are taking place with wallets linked to an ETH wallet holder named nd4.eth and an OpenSea user named nothingness321. The two users are probably the same person anyway. On August 9th, it was revealed that nd4.eth had burned 2,500 ether a few weeks earlier, as well as 1 BAYC, 1 MAYC and 1 BAKC NFT. And he didn’t stop there, he also burned Apecoin tokens, GNS and GMX, and recently he also burned Cryptopunk’s 5237 NFT. According to Arkham, the tokens are burned on purpose, not by mistake. If the calculations are to be believed, so far nd4.eth has burned nearly $8 million worth of tokens. It is also believed that the burned tokens are only a part of nd4.eth’s wealth. Now it’s anyone’s guess as to why the user can burn the tokens and if they even know they’re burning them. And since scheduled burns burn a lot more tokens, it’s unlikely that nd4.eth wants to reduce the supply itself. The most likely theory is that you don’t know where you’re sending your tokens from, so you can’t get them back.
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