Assets, Ethereum

What Is the Ethereum Burn Address?

The Ethereum burn address is a special address that doesn’t hold any ETH tokens. When ETH is sent to this address, it’s gone forever and can’t be recovered.

The Ethereum burn address was created to help reduce the supply of ETH, which in turn should theoretically increase the value of each ETH token. By destroying ETH tokens, it becomes scarcer, and thus more valuable.

NOTE: WARNING: The Ethereum Burn Address is a one-way address used to permanently destroy Ether. Sending Ether to this address cannot be reversed or undone and all funds sent will be permanently lost. Do not send any Ether to this address unless you are absolutely sure of what you are doing.

The Ethereum burn address is also sometimes used as a way to “donate” ETH to projects or causes that the sender believes in, without having to go through a third party. Since the ETH is destroyed and can’t be recovered, there’s no way for the recipient to misuse or misappropriate the funds.

So far, over 4 million ETH have been burned, worth over $1 billion at today’s prices. The most recent burn was just a few days ago, on January 19th, 2021, when 300 ETH were sent to the burn address.

The Ethereum burn address is a useful tool for both investors and projects/causes that receive donations. It helps investors by potentially increasing the value of their holdings, and it helps projects/causes by ensuring that all donated funds are used for their intended purpose.

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