How to Create an Auto-Burn Token in 2025
Daniel T. (MDB Dev)
Published on February 11, 2025
Quick Navigation:
Introduction to Auto-Burn
Auto-burn tokens implement an automatic deflationary mechanism that permanently removes tokens from circulation, potentially increasing scarcity and value over time.
What is Auto-Burn?
Auto-burn is a deflationary mechanism where tokens are automatically and permanently removed from circulation based on specific triggers or conditions, such as transactions or time intervals.
Key Components:
- Automatic burn mechanism
- Burn rate configuration
- Dead address management
- Burn tracking system
Benefits of Auto-Burn
- Deflationary Economics: Reducing supply over time
- Value Proposition: Potential price appreciation
- Transparency: Verifiable burn mechanism
- Community Trust: Automated, tamper-proof process
- Long-term Sustainability: Controlled supply reduction
Creation Process with MDB App
Creating an auto-burn token is simple with MDB App:
Burn Parameters
Essential Parameters:
- Burn Rate: Percentage of tokens to burn per transaction
Recommended: 1-3% per transaction
- Burn Limit: Maximum percentage of total supply that can be burned
Typically 50-90% of total supply
- Burn Frequency: How often burns occur
Per transaction or at specific intervals
- Dead Address: Address where burned tokens are sent
Usually 0x000...dead or 0x000...0000
Testing and Launch
Before launching your auto-burn token:
- Test burn mechanism with various transaction sizes
- Verify burn tracking accuracy
- Test burn limits and stops
- Monitor dead address balance
- Verify burn event emissions
