Burn token

A burn token is a token that has been permanently removed from circulation. This is typically done by sending the burn token to an address where it cannot be accessed or spent. The term burn token can refer to the removed token itself or a token involved in a burn process. Since the burned token is removed from circulation, it reduces the overall token supply. However, burning tokens does not guarantee a price increase, as other factors like demand, liquidity, investor perception, and others still apply. The burn token process can also affect supply, transfer rights, redemption rights, governance, and the risks a holder takes.

For example, a burn token is created when HYPE tokens are sent to Hyperliquid’s inaccessible system address. Hyperliquid validators voted in late 2025 to treat about 37 million HYPE in that address as permanently burned.