Skip to main content
This documentation provides a high-level overview of how the protocol works. While the core concepts and flows are accurate, certain implementation details and design choices may evolve over time as the system matures. Please treat this as a conceptual guide rather than a source of exact specifications.
TLDR: Token issuers on Spark can permanently destroy tokens by burning them, which removes them from circulation. This is accomplished by the issuer signing a burn transaction that updates the token state with Spark Operators, ensuring the total supply is reduced and the burned tokens can never be recovered.

​
Overview

Burning on Spark is the process of permanently removing tokens from circulation. Unlike transfers or freezes, burning is irreversible—once tokens are burned, they cannot be recovered or reissued. This mechanism gives issuers control over their token’s total supply and is commonly used for deflationary tokenomics, redemption processes, or correcting mistakes.

​
How It Works

When an issuer wants to burn tokens, they initiate a burn transaction by signing a request with their Issuer Private Key. This request specifies the Token Transaction Outputs (TTXOs) to be burned and is sent to the Spark Operator group managing that token. The Spark Operators validate the burn request by:
  1. Verifying the issuer’s signature
  2. Confirming the issuer owns the tokens being burned
  3. Checking that the tokens are not frozen
  4. Ensuring the burn doesn’t violate any protocol rules
Once validated, the SOs update the token state to mark those TTXOs as burned, permanently removing them from the circulating supply. The burn is then propagated across the network to ensure all nodes have a consistent view of the token’s supply.

​
Key Properties

  • Irreversible: Burned tokens cannot be recovered
  • Supply Reduction: The total supply is permanently decreased
  • Issuer-Only: Only the token issuer can burn tokens (from their own balance)
  • Auditable: All burns are recorded in the token’s transaction history

​
Common Use Cases

  • Deflationary Mechanics: Reducing supply to increase scarcity
  • Redemption Events: Burning tokens when users redeem for fiat or other assets
  • Error Correction: Removing tokens that were minted in error
  • Buyback Programs: Issuers buying back and burning tokens from circulation