Definition
Proof of Burn is a blockchain consensus mechanism in which participants demonstrate commitment to the network by permanently removing (burning) a specified amount of cryptocurrency from circulation. This irreversible destruction of tokens serves as a verifiable signal of economic stake, allowing the protocol to assign block production or validation rights based on the amount and pattern of assets burned, rather than on computational power or traditional stake locking.
In Simple Terms
Proof of Burn is a method a blockchain can use to decide who gets to create or validate new blocks, based on how many coins someone has permanently destroyed. By sending coins to an address where they can never be used again, participants show they are invested in the network, and the protocol can reward them proportionally.
Context and Usage
Proof of Burn is discussed as an alternative consensus design within blockchain architecture and tokenomics. It appears in debates about energy usage, economic security, and supply management, since it links network participation to deliberate token destruction. The concept is relevant when analyzing how different blockchains allocate validation rights, manage issuance and scarcity, and structure long-term incentives for participants and token holders.