Clear DefinitionsProof of Burn Networks
1 min read
Pronunciation
[proof of burn net-wurks]
Analogy
Like buying a non‑refundable ticket to participate in a lottery for block rewards.
Definition
Blockchains where participants ‘burn’ tokens—sending them to an unspendable address—to earn the right to mine or validate blocks, demonstrating long‑term commitment.
Key Points
Burn address: Tokens sent to provably unspendable output.
Mining rights: Burn amount determines block production probability.
Commitment: Demonstrates vested interest in network health.
Economic cost: Destruction of value deters malicious actors.
Example
Technical Deep Dive
Security Warning
Burned tokens are irrecoverable; design incentives carefully.
Caveat
Network growth destroys base currency; may limit long‑term supply.
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