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Reddit gold to whoever helps me understand how the dead wallet works [beginner question]

Hi there!

So, I’ve been looking at a few contracts with the classic burn tokenomics and I’ve been left somewhat confused. Here is my main concern:

**What is up with 0x000dEaD wallet?**

Being under the impression that these deflating tokens burn a percentage of every transactions, I’m looking at the burn wallet where most of these burnt tokens go, and I’m surprised by the super low number of transactions.

For example, on Mainnet, 0x000000000000000000000000000000000000dEaD only has a total of 315 transactions… —> [https://etherscan.io/address/0x000000000000000000000000000000000000dEaD](https://etherscan.io/address/0x000000000000000000000000000000000000dEaD)

[ Tokénomics, gotta understand em’ all ](https://preview.redd.it/awc2kks87eb71.png?width=630&format=png&auto=webp&s=4669ae07ee6510484c979058cc5acc9879216df4)

Does the burn happens only when a dev call a specific function?

Are the burns somewhat grouped up?

Thanks in advance for helping out a poor newbie like me

**EDIT1:** I also posted the same question regarding the BSC network and reflect tokénomics, you can see the thread right here. I know i’m missing something very important and will be forever grateful to whoever helps me! —> [https://www.reddit.com/r/cryptodevs/comments/okrqbc/struggling_to_understand_how_rfi_functions_work/](https://www.reddit.com/r/cryptodevs/comments/okrqbc/struggling_to_understand_how_rfi_functions_work/)

**EDIT2:** Special thanks to u/c_o_r_b_a that gave a great conceptual explanation down below, great stuff!

What do you think?

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6 Comments

  1. A very important thing to understand is the different layers of transactions. When you click “transactions”, you’re seeing just standard Ethereum transactions, with ether (ETH) being transferred somewhere.

    Tokens are one layer lower down the stack. Assuming a proper, non-malicious, standard-compliant token, when you “transfer” tokens, you’re just adding or subtracting a number in the contract’s internal accounting sheet, basically. It’s a virtual transaction or “internal transaction” rather than an actual Ethereum transaction. So you have to look at internal transactions. (Which might be further abstracted to “ERC/BEP-20 transactions”, which is just a nicer and more human-friendly way of presenting data for internal transactions that involve ERC/BEP-20 tokens, since they’re so common).

    The contract stores a dictionary mapping Ethereum addresses to token balances. When a sender “transfers” tokens to an address, the contract looks up the sender’s and recipient’s address and adds the number to the recipient’s token amount and subtracts the number from the sender’s token amount. No actual transaction on the network occurs, generally.

    So when a sender “burns” some tokens, what it really means is that the token contract looks up 0x0000…dead in its internal dictionary and adds the burnt token number to 0x0000…dead’s token balance and subtracts the number from the sender’s token balance.

    tl;dr It’s like an imaginary layer of money inside of an imaginary layer of money, and you’re looking at only the top layer.

    Then the RFI/reflection stuff is *yet another* imaginary layer of money nested inside the imaginary layer nested inside the imaginary layer. So it can definitely take some time to understand it all. There’s a good explanation in this blog post: [What the hell is _rTotal and _tTotal](https://wd666.medium.com/what-the-hell-is-rtotal-and-ttotal-4e2ec90466f7)

    >TL;DR: In Reflection contracts like Safemoon, _rTotal is like the money shown in the balance sheets of the central bank, while _tTotal is like the currency in circulation. When someone sells and a fee is to be distributed to all holders, instead of doing it with a for loop, _rTotal is shrunk so everyone’s money is worth more, just like deflation.

  2. In addition to what c_o_r_b_a wrote there’s the misunderstanding that the zero address (`0x0`) is the burn address (not the one ending in `dEaD`). So lots of folks send the tokens they want to burn to the zero address (`0x0`) rather than the `dEaD` one. `0x0` is for contract creation, not for burning tokens.

    Generally speaking the tokens aren’t really burnt but they’re inaccessible given that the private keys of such burn addresses are unknown. Nobody can access the funds in those accounts.

    This also explains why it’s important to use the official burn address (the one ending in `dEaD`). Never “burn” tokens or coins by sending it to a random address which claims to be the burn address.

    Here’s the explanation (from “Mastering Ethereum”) of the difference between `0x…0` and `0x…dEaD` https://github.com/ethereumbook/ethereumbook/blob/develop/06transactions.asciidoc#special-transaction-contract-creation

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