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Overview

Ethereum supports native ETH burning via mechanisms like EIP-1559, but Hedera takes a different approach. The native HBAR token cannot be burned. Instead, developers can use the Hedera Token Service (HTS) to create and manage custom tokens with built-in minting and burning capabilities.

Key Features for EVM Developers

  • Supply Key
    • Controls minting and burning of tokens.
    • Must be securely managed to prevent unauthorized actions.
  • HTS System Contract
    • System contract functions accessible via reserved address 0x167.
    • Enable token creation, minting, and burning directly from Solidity contracts.
  • Access Control
    • Only addresses authorized by the supply key can mint or burn tokens.
    • Multi-signature (multi-sig) or threshold key configurations can enhance security.

Minting and Burning Tokens with HTS

  • Minting Tokens: Introduce new tokens for incentives, rewards, or liquidity.
  • Burning Tokens: Remove tokens to increase scarcity or meet regulatory requirements.

Code Example: HTS Mint/Burn

Important Notes
  • Ensure the caller holds the supply key.
  • Associate the treasury account with the token for successful operations.
  • Minting and burning fail without proper key authorization.

Additional Resources