Locked-Allocation Burn
A locked-allocation burn destroys tokens from an allocation that has not yet vested.
TradFi parallel: Like cancelling a block of unexercised employee stock options rather than buying back shares that are already trading.
Key Takeaways
- 01Start with the definition: A locked-allocation burn destroys tokens from an allocation that has not yet vested.
- 02Read the governing documentation before treating a label as a supply conclusion
- 03Separate scheduled entitlement, contractual transferability, and actual circulating supply
- 04Use dated on-chain or canonical data for any amount, percentage, or event date
- 05A buyback, unlock, burn, or reward label does not by itself establish the net supply effect
- 06Remove or qualify any project-specific conclusion that cannot be reproduced from a primary source
How It Works
A locked-allocation burn destroys tokens from an allocation that has not yet vested.
The label alone does not establish a token's current supply impact. To evaluate locked-allocation burn, read the governing token documentation and contract rules, distinguish scheduled entitlement from tokens that are actually transferable or circulating, and use dated on-chain data for any quantity. Do not infer a burn, price effect, holder behavior, or release amount from the label alone.
When a claim depends on a figure, date, allocation, fee route, or prior market event, retain it only when the underlying primary document, governance record, contract state, or reproducible data snapshot is available. Otherwise state the mechanism generally and leave the project-specific conclusion out.
Real World Examples
Scenario 1: verify before concluding
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Use the project's published rules, the relevant contract or governance record, and a dated supply snapshot. Keep only conclusions that those records directly support.
Scenario 2: verify before concluding
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Use the project's published rules, the relevant contract or governance record, and a dated supply snapshot. Keep only conclusions that those records directly support.
Scenario 3: verify before concluding
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Use the project's published rules, the relevant contract or governance record, and a dated supply snapshot. Keep only conclusions that those records directly support.
Scenario 4: verify before concluding
View →
Use the project's published rules, the relevant contract or governance record, and a dated supply snapshot. Keep only conclusions that those records directly support.
Scenario 5: verify before concluding
View →
Use the project's published rules, the relevant contract or governance record, and a dated supply snapshot. Keep only conclusions that those records directly support.
Frequently Asked Questions
Does a locked-allocation burn support the price?
Check the governing documentation, contract state, and dated on-chain or canonical data. The answer depends on the project's specific rules and current supply state, so do not infer it from the label alone.
Why would an insider agree to burn part of their own allocation?
Check the governing documentation, contract state, and dated on-chain or canonical data. The answer depends on the project's specific rules and current supply state, so do not infer it from the label alone.
How do I verify an announced locked-allocation burn actually happened?
Check the governing documentation, contract state, and dated on-chain or canonical data. The answer depends on the project's specific rules and current supply state, so do not infer it from the label alone.
Do allocation percentages update after tokens are burned?
Check the governing documentation, contract state, and dated on-chain or canonical data. The answer depends on the project's specific rules and current supply state, so do not infer it from the label alone.
Related Terms
Track on Tokenomist
Supply-side analysis for educational purposes. Not financial advice. Verify assumption and precision labels on the relevant token page.
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