Definition ∞ A unidirectional burn refers to a token burning mechanism where tokens are permanently removed from circulation in a single, irreversible direction. Once tokens are sent to a burn address, they cannot be recovered or re-minted. This process is designed to reduce the total supply of a digital asset over time. It typically functions as a deflationary measure to enhance scarcity.
Context ∞ Unidirectional burns are frequently discussed in crypto news, particularly in relation to tokenomics models aimed at creating deflationary pressure or distributing value to remaining token holders. A key consideration involves the transparency of the burn mechanism and its predictable impact on the token’s supply schedule. Future protocol designs may incorporate these burns as a core component of their economic strategy, often tied to transaction fees or protocol revenue. Understanding this mechanism is essential for assessing a token’s long-term supply dynamics.
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