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 $100 of stablecoin. You send them $100, 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).