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