What Is Burning An NFT? A Complete Guide And Explanation
A non-fungible token (NFT) can be "burned" rather than "erased." Once an NFT is printed or uploaded to the network, it is deemed immutable, which means it will remain on the blockchain in eternity. So, is it feasible to get rid of NFTs?
An NFT is kept on the blockchain, which is a peer-to-peer database where all users can see who owns it. This feature guarantees that the ownership of addresses is correct. The blockchain architecture was designed so that all transactions on the blockchain can be observed and confirmed by all users. This makes changing the data (or blocks) on the blockchain impossible.
It is not possible to "delete" an NFT due to the structure of the blockchain; however, it is possible to "burn" an NFT by sending it to an address that no one controls. While NFT will remain on the blockchain, it will be inaccessible and will therefore be considered "burned" or withdrawn from circulation.
How Do I Burn an NFT?
Non-fungible tokens (NFTs) cannot be deleted after they are minted on the blockchain; however, if an NFT is sent to an address that is unreachable by anyone, its ability to be found in the marketplace may be taken away.
To burn an NFT, simply send it to a black hole wallet address (for example, 0x000...). NFT will remain on the blockchain but will no longer be accessible.
0x000... is the most commonly used black hole address where people send cryptocurrencies as well as NFTs. This will essentially “eliminate” the digital asset, although it will incur some transaction fees.
While the typical user is unlikely to join in an NFT burning, huge crypto-based corporations may. Crypto companies may decide to burn NFTs or cryptocurrencies in order to modify the quantity accessible to the open market. Reducing the supply of an NFT "line" or a coin raises the price of demand owing to scarcity.
This system is especially used by creators with large communities. The existing nft is reduced by burning, thus allowing the price to rise.
What Is an NFT Burn Address?
The address is: 0x000000000000000000000000000000000000dEaD
Cost of Burning an NFT
Burning your NFT is simple, and it costs about $10 on average. Since burning an unalterable NFT is a transaction, you must pay a transaction (gas) cost. This fee changes and is determined by the current supply and demand on the blockchain. An NFT typically costs $1-20 to burn.
Generally, a token burning occurs in the following order:
- An NFT holder chooses which NFT to burn and initiates the transfer to the burning wallet.
- Next, the contract will check if the individual has gas charges in his wallet and whether the specified number of coins are correct.
- If you do not have enough cash to cover the gas cost, the transaction is worthless and invalid, and the NFT is not burned. If your wallet contains the necessary gas cost, you must sign the contract confirming the transaction before your NFT is permanently lost.
- In the blockchain ledger, an NFT burn is viewed as a public, irrevocable, and permanent transaction. The blockchain records this transaction, and NFT is no longer deemed accessible.
- In addition, fees from incineration are distributed to miners as usual.
The purpose of burning NFT is to benefit both developers and investors. In most circumstances, burning NFTs increases the value of the NFTs while decreasing the increasing supply. Because of this apparent openness, investors are encouraged to safeguard their NFTs, so generating value, rather than seeking to sell them at reduced prices.