Burn or lock: which one fits your launch?
A burn is permanent, a lock is a promise with a date. When each one makes sense, and how to combine them.
Two ways to take supply off the table
Holders want to know that a big share of supply can't be dumped on them tomorrow. There are two ways to show that on-chain: lock the tokens until a date, or burn them for good.
Locking: a promise with a date
A lock holds tokens in a contract until the unlock date, then the depositor can take them back. It fits supply you still need later: a team allocation, a treasury, or liquidity you plan to manage.
The date is the promise. On Virtuallock it can be pushed later but never earlier, so holders can plan around it.
Burning: permanent
A burn sends tokens to an address no one controls, so they leave circulation forever. It fits supply you will never need: unsold launch tokens or a buyback you want to retire. There is no undo, so burn only what you are sure about.
Combining the two
A lock can also burn part of itself when it ends. Set a burn share when you create the lock, and that percentage is burned on withdrawal while the rest returns to you. It shows holders that some supply is retiring now and some is only paused.
A rule of thumb
- Will you need these tokens again? Lock them.
- Are you sure you never will? Burn them.
- Not sure about all of it? Lock with a burn share.
Lock tokens with no admin key
Pick a token, an amount and a date on Robinhood Chain.