The issuer signs a burn transaction specifying which tokens to destroy. Operators validate and commit. Those tokens no longer exist. Total supply decreases.
Redemptions. User wants to cash out 100ofstablecoin.Yousendthem100, burn their 100 tokens. Supply stays matched to reserves.Deflationary mechanics. Some tokens burn a portion of each transaction or do periodic buyback-and-burns.Mistakes. Minted too many? Burn the excess.
Burning is permanent. There’s no undo. Double-check amounts before you burn. If an issuer burns tokens by mistake, the only fix is minting new ones (if max supply allows).