# Burn assets

Source: https://docs.settlemint.com/docs/user-guides/asset-servicing/burn-assets
Permanently remove units of a security from circulation.



Burning permanently removes units from circulation and reduces total supply.
This is the on-chain equivalent of share cancellation or bond redemption.

**Common use cases:**

* **Redemptions** - Cancelling units when investors exit a fund or redeem bonds at maturity
* **Buybacks** - Retiring shares after a repurchase program
* **Regulatory enforcement** - Removing assets from non-compliant holders
* **Error correction** - Reversing erroneous issuances (with proper authorization)

<Callout type="warn" title="Irreversible action">
  Burning is permanent and cannot be undone.
</Callout>

## Prerequisites [#prerequisites]

* `SUPPLY_MANAGEMENT_ROLE` for the asset (check **Permissions** tab)
* Target addresses must hold sufficient unfrozen balance
* If the asset charges an external transaction fee and you burn from your connected wallet, that wallet must hold enough fee token and approve the external fee feature for the burn fee.

## Steps [#steps]

<Steps>
  <Step>
    ### Open burn dialog [#open-burn-dialog]

    Navigate to the asset page and open the **Holders*&#x2A; tab. Click the &#x2A;*...** (actions) dropdown on the holder row you want to burn from, then select **Burn**.

    ![Holders tab with burn action](/docs/asset-servicing/burn-menu.webp)
  </Step>

  <Step>
    ### Enter details [#enter-details]

    Select the holder address and enter amount. For multiple addresses, click **Add address**.

    ![Burn tokens form](/docs/asset-servicing/burn-form.webp)
  </Step>

  <Step>
    ### Confirm [#confirm]

    Review the supply change and authenticate with PIN/OTP.

    If you are burning from your connected wallet and the asset charges an external transaction fee, the confirmation screen checks your fee-token balance and allowance before you submit.

    If the balance is sufficient but the allowance is too low, use **Approve fee allowance** from the confirmation screen, then return to the burn confirmation.

    If you burn from another holder, confirm that holder's fee-token balance and allowance before submitting because third-party wallets are not checked in the confirmation screen.
  </Step>
</Steps>

## Verify totals [#verify-totals]

Return to the **Asset details** tab to confirm **Total burned** reflects the cumulative amount burned for the asset. The totals update from indexed supply history, so allow a short refresh if needed.

## Troubleshooting [#troubleshooting]

| Issue                    | Solution                                                                                                   |
| ------------------------ | ---------------------------------------------------------------------------------------------------------- |
| Burn button disabled     | Verify `SUPPLY_MANAGEMENT_ROLE` assignment                                                                 |
| Insufficient balance     | Check holder's available (unfrozen) balance                                                                |
| Amount exceeds available | Some assets may be frozen by custodian                                                                     |
| External fee warning     | Fund the connected wallet with the fee token, or approve the external fee feature to collect the burn fee. |

## Related [#related]

* [Asset servicing guides](/docs/user-guides/introduction)
* [Mint assets](/docs/user-guides/asset-servicing/mint-assets)