Proof of Burn

DAGCHAIN

The DAGS native token on DAGChain is designed without burn or mint functions, meaning the only way to permanently remove tokens from circulation is by sending them to a burn wallet — an address that is inaccessible and cannot be used to recover tokens.

However, regular wallets have built-in security checks that prevent users from sending tokens to invalid addresses. This makes it impossible to transfer DAGS directly to the burn wallet address we would like to use, using a standard wallet application, as the desired address does not exist and the wallets are not allowing users to send a transfer to an invalid address.

To solve this, we aim to utilize a headless wallet — a specialized system that can execute transactions without a graphical interface. This allows developers to bypass the security checks in regular wallet applications and send a transfer to an address that is invalid. The burning process follows these steps: 1️⃣ Tokens are first sent to a “pre-burn” address (a temporary holding address). 2️⃣ From the pre-burn address, the tokens are then sent to the burn address, which is an invalid and inaccessible address, ensuring they are permanently removed from circulation.

This process guarantees that burned DAGS are truly gone forever, reducing supply and reinforcing the token’s value through scarcity.

NB: We are still testing to be sure the invalid address does not cause any unexpected issues to the network. Once these tests are completed we will notify you and commence the burn on both chains. Pre-burn wallet: Announced shortly.. Burn address: OOOOOOOOOOOOOOOOOOOOOOOOBURN (Desired and in testing) Dagchain explorer link to burn address: Added shortly..

BEP20

The DAGS BEP20 contract includes a built-in burn function, allowing tokens to be burned. However, since the contract also has a mint function, any burned tokens could technically be brought back into circulation. This means that the standard burn mechanism does not permanently remove tokens from the supply.

To ensure a definitive and irreversible reduction in circulating supply, we utilize a burn wallet (a wallet with no private key, making it impossible to retrieve tokens). By sending tokens to this burn wallet, they are permanently removed from circulation, effectively reducing supply and supporting the token’s price through scarcity. This method guarantees that burned tokens can never be minted back, ensuring a true deflationary effect.

BEP20 widely known burn address: 0x000000000000000000000000000000000000dEaD BSC Scan link to burned DAGS: https://bscscan.com/token/0x96fD3F8D5689C0C1691D93e7A1E8C892a2A79D73?a=0x000000000000000000000000000000000000dead