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Burning

Burning permanently removes LODE from circulation. It earns you a burn amplifier bonus that boosts all future mints, and qualifies you for the 28-day burn pool ETH rewards.

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Three Ways to Burn

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1. Burn Liquid LODE

Burn LODE directly from your wallet. Tokens are permanently destroyed.

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2. Burn a Stake

Burn an active stake instead of ending it. No penalty regardless of maturity — but the staked LODE is gone forever.
Burning a stake avoids the 50% early end stake penalty, though you lose the LODE entirely.

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3. Burn a Mint

Burn an active mint without waiting for maturity. Bypasses the maturity requirement.

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Burn Amplifier

Every LODE you burn increases your burn amplifier, which adds a permanent bonus to all future mint rewards: 
burnAmpBonus = min(8%, userTotalBurned / 80,000,000,000 LODE x 8%)
Total BurnedAmplifier Bonus
00%
8 billion LODE0.8%
40 billion LODE4%
80 billion LODE8% (maximum)
Once earned, the amplifier is permanent and cannot decrease.

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28-Day Burn Pool

When the burn pool is enabled, 7% of protocol fees accumulate in a 28-day cycle pool. At the end of each cycle, the pool is distributed proportionally: 
yourReward = (yourCycleBurns / totalCycleBurns) x burnPool
Burning during a quiet cycle gives you a bigger slice of the pool.
The burn pool must be enabled by the protocol owner. The burn pool is separate from staking rewards — you claim them independently.

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Proof-of-Burn 2.0 (Third-Party Integration)

External projects can burn LODE on behalf of users by implementing the IObeliskOnBurn interface. They may specify:
  • User rebate: 0-8% (minted to user)
  • Builder fee: 0-8% (minted to project)
  • Combined cap: 8% total
This enables a composable burn ecosystem where other protocols build on top of Obelisk’s burn mechanics.