VECTOR_ANALYSIS // FINANCE
Burning
NODE: BURNING
VERIFICATION: PASSED
01_DEFINITION
Strict Definition
"The permanent removal of tokens from the circulating supply, usually by sending them to an 'eater address' that no one can access."
Liability Check // Risk Analysis
The 'Artificial Value' risk. Burning is often used to mask low organic demand. If the burn rate slows or stops, the 'deflationary' narrative collapses, and the price may follow.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
Strategy Domain
"Use burning to distribute 'Dividends' in a tax-efficient way by increasing the scarcity of the remaining tokens held by the community."
Operations Standard
"Automate 'Buy-back and Burn' programs using smart contracts triggered by protocol revenue."
Legal & Compliance
"Verify that 'Burning' mechanisms do not trigger 'Dividend' or 'Security' classifications by local tax authorities."
DOCUMENT_ID: CW3-BURNING-2026
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: LVEGND
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: LVEGND