Adding a Burn Function to SIP-010 Fungible Token Standard

#1

Hello Stacks Community,

I would like to propose an enhancement to the SIP-010 fungible token standard by including a native burn function. While Clarity provides the ft-burn? function, this is not currently required in the SIP-010 trait. As a result, developers often rely on sending tokens to the zero address, which doesn’t truly reduce the circulating supply but just locks the tokens.

Here’s why adding a burn function would be beneficial:

  1. Supply Control
    Burning tokens would provide a clear, permanent reduction in supply, helping control inflation and improve market stability.
  2. Encouraging Deflationary Models
    A standard burn function would simplify the creation of deflationary tokens, making them more attractive to long-term holders by naturally increasing scarcity.
  3. Transparency and Trust
    On-chain burn events would be verifiable and final, ensuring transparency in token supply management and increasing trust within token economies.

In conclusion, adding this feature would simplify development, encourage healthier tokenomics, and provide transparency in managing token supply. I look forward to hearing your thoughts on this proposal.

Cheers

Eriq

3 Likes
#2

I’ve been brainstorming an idea for a project I’m exploring building on Stacks. A burn is a critical part of the functionality and it would be better to have a native burn that allows for transparency and a deflationary model vs just sending the tokens out to a zero address.

Burn functionality isn’t new, so I’m unsure what the resistance would be here. Maybe there are downstream issues I’m unaware of.

#3

Hi Tommy, on clarity you can use native function to burn ft/nft ft-burn? command will decrease the total supply of your token.
My problem was related to the fact that to be sip-10 compliant doesn’t mean you are exposing a public burn function, and the only possibility is sending them to burn address.
But it’s a dev choice to implement a public burn or not.

It’s very bullish you are building on stacks :muscle::muscle:
Looking forward :eyes::eyes:

Cheers

Eriq