# Burn mechanisms ### What is a token burn? Token burning is the process of permanently removing tokens from circulation to reduce supply. This is done by sending tokens to an unrecoverable wallet (burn address), ensuring they can never be accessed or spent again. ### **What is a burn wallet?** A burn wallet (or burn address) is a special crypto wallet address where tokens are sent permanently to remove them from circulation. Once tokens are sent to a burn address, they cannot be recovered because no one has the private keys to access them. **Deflationary mechanisms enable unique economic incentives. For example:** • Transaction-based burns reduce supply with each transaction\ • Burn incentives that reward early adopters and reduce circulating supply benefitting all holders\ • Community burns that incentivize buying and burning for additional benefits --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://wiki.dagcoin.org/dags/burn-mechanisms.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.