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Burn

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What does a valid Burn transaction contain

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Inputs

  • USD-B token recipient UTXO/UTXOs : The transaction spends one or more UTXOs containing USD-B runes that the user wishes to burn, referencing the specific token amounts to be destroyed for collateral release.

  • Collateral Cell : The UTXO which holds the locked collateral.

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Outputs

  • OP_RETURN Output : The OP_RETURN output carries the USD-B rune data—token ID, operation (“BURN”), amount and other relevant metadata—in a single unspendable script.

  • Collateral(+change) Release Output : The collateral locked with minting is released to user (along with any change amount after user fund's this transaction).

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How to Burn USD-B tokens

  • Select Transaction Inputs : Choose a UTXO/UTXOs from wallet to burn tokens.

  • Construct the Burn Transaction : Build the transaction with the required inputs and outputs for a valid burn transaction as in the template explained above.

  • Sign the transaction : User signs the Rune recipient and Collateral Cell inputs using his wallet.

  • Protocol Signature : The signed transaction is submitted to the protocol’s distributed MPC network, where each node verifies its validity against protocol rules and provides its partial signature using the Flexible Round-Optimized Schnorr Threshold (FROST) scheme; once the required threshold is met, the fully signed transaction is broadcast to the Bitcoin network.

Making the burn atomic ensures every USDB token that is removed from circulation corresponds to the unlocking of the appropriate amount of Bitcoin collateral, preserving system solvency and maintaining trustworthiness.

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