$ETH The destruction of cryptocurrency refers to the permanent removal of coins or tokens from circulation, thereby reducing the total supply. This is done by sending them to a **destruction address** (a wallet without a known private key, making the funds unrecoverable).

How does cryptocurrency destruction work?

1. Destruction address: A special blockchain address (for example, `0x000...dead`) where tokens are sent and become unusable.

2. Transaction verification: The destruction is recorded on the blockchain, making the process transparent and verifiable.

3. Supply reduction: Since the burned tokens can never be recovered, the total circulating supply decreases.