Create a random burn address

Generate burn addresses for permanently removing tokens from circulation

(define-read-only (generate-burn-address (entropy (string-ascii 40)))
(let (
;; Hash the entropy to create address bytes
(hash-bytes (hash160 (unwrap-panic (to-consensus-buff? entropy))))
;; Use version byte for current network
(version-byte (if is-in-mainnet 0x16 0x1a))
)
;; Construct a valid principal that no one controls
(principal-construct? version-byte hash-bytes)
)
)
;; Example: Generate unique burn address
(generate-burn-address "BURN-2024-01-15-PROJECT-XYZ")
;; Returns: (ok SP1FJPSG7V4QMA7D4XVPZ3B2HQ8GY3EK8GC0NGNT3)

Use cases

  • Token burning mechanisms
  • Proof-of-burn implementations
  • Creating unspendable addresses for protocol fees
  • Deflationary token economics

Key concepts

Burn addresses are valid principals that:

  • No private key: Generated from arbitrary data, not a key pair
  • Verifiable: Anyone can verify tokens sent to these addresses
  • Unique: Different entropy creates different addresses
  • Permanent: Funds sent are irretrievably lost