Ever wondered how creators and big NFT companies get rid of unwanted tokens after minting or wondered how crypto collectibles go into scarcity? If you want to learn how to burn an NFT, this is the best guide for you.
A non-fungible token is a unique digital identifier that cannot be duplicated, shared, or substituted, that is recorded in a blockchain and that is used to certify authenticity and ownership.
NFTs generally represent digital files such as photos, videos, and audio. The fact that NFTs are uniquely identifiable assets makes them different from cryptocurrencies. That’s why they are non-fungible.
NFTs can be created by anybody and it requires a few or no coding skills to develop. Although as a senior developer, you must possess good coding skills, especially in embedding metadata in each individual NFT in your collection. The ownership of an NFT is recorded on a blockchain and it can be transferred by the owner. This allows NFTs to be sold and traded.
In this article, we share explain NFT in general, and how to burn an NFT. If you want to burn or destroy your NFT, then this is the best post to gain knowledge. Let’s get to it!
Non-fungible tokens are built on blockchains. A blockchain is a decentralized database. The cryptographic nature of an NFT is possible because it is built on a blockchain. Blockchain as a building block for NFTs makes them immutable which means will exist on the blockchain forever.
To burn a non-fungible token, you must be the creator and the sole owner. If the token is transferred and the ownership is changed, you will not be able to burn the token.
A quick guide on how to burn an NFT
A non-fungible token cannot be deleted but it can be burned. It is very easy to Burn an NFT, all you need to do is to send it to an inaccessible address and it will be removed from circulation.
Once you burn an NFT, it cannot be undone and the whole process will be irreversible.
Quick instructions:
- Select the NFTs page you wish to burn and click Manage.
- Click on Burn NFT.
- You will be prompted to confirm that the action will not be reversed by clicking the checkbox.
- Proceed by clicking Burn.
- After clicking Burn, your connected wallet will prompt you to confirm the transaction by paying the gas fee required to complete the process.
- Your NFT has been successfully burned.
As I mentioned earlier, NFTs cannot be deleted once it is minted on a blockchain but they can be burned. To burn an NFT, you must send it to an inaccessible digital wallet address.
Open the crypto wallet or marketplace where the NFT you wish to burn is stored, and transfer the token by entering a black hole wallet address, 0x0000000000000000000000000000000000000000. The token will exist on the blockchain forever but it cannot be accessed and the whole process cannot be reversed once done.
The wallet address above is the most commonly used cryptocurrency and NFT black hole where people send their tokens to burn them. This process requires some gas fees to be completed.
Why do people burn their NFTs or cryptocurrency?
Mostly, large crypto base companies take part in burning tokens. Crypto organizations may choose to burn their NFTs or cryptocurrencies as a way to modify the supply that is available in the open market. An increase in scarcity will likely drive an increase in demand and price as well.
Meme coin Shiba Inu, the 12th largest cryptocurrency gained an increase in price as close to 110 million SHIB token was burned which is about 40% of the total SHIB was burn to date according to data from Shibburn.
Binance, the largest cryptocurrency exchange with a built-in NFT marketplace has roughly burned four million BNB tokens in its history. The decrease in supply spike the increase in demand and affected the price greatly.
Other reasons to burn an NFT are;
- To Rectify Errors
NTF creators sometimes make mistakes during creation, and the blockchain is almost impossible to edit when compared to other technical errors an artist could make during the process.
To rectify this issue, the best option is to burn the token. The problem might be the over-circulation of the non-fungible token. In this case, you cannot delete an NFT so all you have to do is to burn them.
- Gamified Trading
Most projects practiced a burn mechanism that is used to gamify their community. They do this by giving collectors an option to hold an asset for a longer time or trade it for a token or something of equal value or greater value, holders are encouraged or rewarded to burn their tokens to receive the new assets.
This implementation reduces the total supply of the original token. In other words, making the tokens more valuable.
Is it safe to burn an NFT?
Burning an NFT, or destroying the digital asset and removing it from circulation, is technically possible and can be done by the owner of the NFT. However, this act is not necessarily “safe” in the sense that it will not have consequences or impact the value of the NFT or the NFT market.
Destroying an NFT reduces the overall supply of that particular asset, which can in theory increase its scarcity and therefore its value. However, the value of an NFT is largely determined by demand, and the market may not necessarily react positively to the destruction of an NFT. Additionally, once an NFT is burned, it is gone forever and cannot be recovered.
It’s important to consider the potential consequences of burning an NFT before doing so, as it could impact not only its value but also the value of other NFTs created by the same artist or in the same series. Ultimately, the decision to burn an NFT should be made after careful consideration and with a clear understanding of the risks involved.
How to burn an NFT metamask ?
To burn an NFT in Metamask, you will need to execute a smart contract function that destroys the NFT. This process requires a basic understanding of smart contract programming and the use of Ethereum’s programming language, Solidity. Here are the general steps you can follow to burn an NFT in Metamask:
Connect to the Ethereum network: Open Metamask, select the Ethereum network you want to use, and make sure you have enough Ether (ETH) to pay for the transaction fees.
Write the smart contract code: The smart contract code should include a function that allows the owner of the NFT to burn it by calling the self-destruct function and passing the address of the NFT.
Deploy the smart contract: Use a tool like Remix, a web-based Solidity compiler, to deploy the smart contract to the Ethereum network.
Call the burn function: Once the smart contract is deployed, use Metamask to interact with the contract and call the burn function. You will need to provide the NFT’s address and confirm the transaction.
Confirm the transaction: The burn transaction will be added to the Ethereum network’s blockchain, and you can confirm its success by checking the contract’s transaction history.
Please note that these are general steps, and the specifics of the smart contract code and the process of deploying it may vary depending on the specific NFT and the Ethereum network you are using. If you are not experienced with smart contract programming, it is recommended that you seek help from a professional or consult online resources to ensure the safety and security of your NFTs.
How to burn an NFT on Binance
“Burning” an NFT on Binance typically refers to the process of permanently destroying or removing a token from circulation. This is usually done to decrease the overall supply of the token and increase its scarcity and perceived value. Here are the steps you can follow to burn an NFT on Binance:
Make sure you have a Binance account: If you don’t have an account already, you’ll need to create one. You’ll need to provide some personal information and complete the verification process.
Deposit the NFT into your Binance account: To burn an NFT, you first need to own it. If you don’t already have the NFT, you’ll need to purchase it from a seller and deposit it into your Binance account.
Locate the “Token Burn” option: Look for a button or link labeled “Token Burn” or “Burn NFT” in your Binance account. This is usually found in the “Assets” or “NFT” section.
Submit the burn request: Once you’ve located the “Token Burn” option, follow the steps to submit a request to burn the NFT. You’ll typically need to confirm the burn and provide any additional information or confirmation that may be required.
Wait for the burn to be processed: After you’ve submitted the burn request, it will be processed by the Binance team. This process can take several days or longer, depending on the volume of requests and the complexity of the process.
Note: The exact process for burning NFTs on Binance may vary depending on the token and the platform. It’s important to carefully review the instructions and any additional information provided by Binance before submitting a burning request.
Related Question
1. Can you destroy an NFT?
No, you cannot destroy a non-fungible token because it is built on a blockchain which makes it immutable. NFT can only be burned by sending it to an inaccessible digital wallet address and it can never be recorded after it is burned.
2. Can I delete an NFT on OpenSea?
The answer is YES! You can delete a token on the OpenSea platform as long as you claim ownership.
3. Can I get money for burning an NFT?
No, you don’t get any reward for burning an NFT. Burning an NFT you bought is considered a tax loss, although some blockchains like Solana will deposit a small amount of SOL into your wallet whenever you burn an NFT. This is known as a rebate for burning NFTs.
4. What is the limitation of burning an NFT?
The only limitation or hindrance in burning an NFT is the gas fee. Especially the Ethereum blockchain. The gas fee to burn an ETH token falls between $5 to $50. There are a few methods one can take to mitigate the high gas fee.
Two methods to reduce gas fee
- Burning your NFT early in the morning or late at night is a way to reduce the gas fee, this depends on your timezone. You can use the Ethereum Gas Tracker to check if gas price is high or low.
- Use the low-priority option when confirming the transaction. This is another great method to reduce gas fees. You save a few dollars by using the Low priority option when you’re about to confirm your transaction. Generally, this option takes a long time but if the network is not congested, it will only take a few seconds.
Wrapping Up
NFTs generally represent digital files such as photos, videos, and audio. The fact that NFTs are uniquely identifiable assets makes them different from cryptocurrencies. That’s why they are non-fungible. How to burn an NFT?
A non-fungible token cannot be deleted but it can be burned. It is very easy to Brun an NFT, all you need to do is to send it to an inaccessible address and it will be removed from circulation.
Open the crypto wallet or marketplace where the NFT you wish to burn is stored, and transfer the token by entering a black hole wallet address, 0x0000000000000000000000000000000000000000. The token will exist on the blockchain forever but it cannot be accessed and the whole process cannot be reversed once done.