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Making a Burn Address on the blockchain is currently done by using a script address with a validator that always returns False and so never validates.

This ties up ADA and causes the size of the blockchain to increase (become bloated with addresses full of useless assets) causing the full node requirements to increase.

How can you do the following two things:

  1. Prevent ADA from Accumulating in these scripts?
  2. Minimnse the effect they have on the size of the ledger (prevent bloating)?
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  • Not sure if there is a generic way to tell whether a script is a "burn" script or something that succeeds really rarely. Also, I don't think accumulating ADA to these script addresses should be prevented (it's the spender's choice): they might also send their ADA to an address where the private key has been (deliberately) forgotten. Sep 10, 2023 at 19:34

3 Answers 3

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You must correctly specify what is allowed in the monetary policy to allow burning. If when minting a token you use a minting policy that does not allow the burning of the token, the ledger rule will not allow the burning of the token. Then the only way of burning the token is to lock it indefinitely.

You can also make minting policies that allow for burning the token, this will remove it from the output.

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Burning isn't a problem as it essentially means the remaining Ada/tokens become more valuable.

Once many UTxOs start accumulating at burn script addresses, cardano-db-sync can be upgraded to start filtering those addresses out.

The actual ledger contains each individual transaction, not the most recent UTxO snapshot, so accumulation of UTxOs at burn addresses will have no impact on ledger size.

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This will likely be resolved by keeping UTxOs in RAM depending on when these were created: keep recent ones in RAM while relaying older ones to disk (much like a filesystem cache).

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