Offsetting
This guide is for informational purposes only and does not constitute financial or professional advice. Learn about the risks.
About offsetting
Digital asset offsetting, also known as burning or deleting, is a transaction that permanently removes / retires crypto tokens from circulation. The transaction is recorded on the blockchain and can be used as a receipt to verify that the asset removal has taken place.
How to offset digital assets
On the Stellar and XRPL networks, an offset transaction is initiated by sending the tokens to the issuing account. This permanently removes the assets from circulation and creates a permanent and public record of the burn transaction on the blockchain.
Double-check that all information is correct before sending.
Transactions are public and permanent.
Potential use cases
Offsetting is a useful tool to control a token's supply, offering an auditable way to manage assets. It is particularly valuable in scenarios requiring compliance or proof of asset retirement. For example: removing tokenised assets from circulation when they are redeemed, or removing carbon credits from circulation to offset emissions.