# Burn

When v$ move on Layer 1 you can see the real time burns happening in the wallet below.

When v$ move on Layer 2 this does not show in this location, instead it accumulates and will reflect prior to VOW auctions being held.

It should be understood that the VOW/v$ auction ensures re-minting of v$ in exchange for burned VOW. This means that when v$ (or any other vCurrency) requires to be re-minted,  after taking into account localised ecosystem requirements imposed by the MVDs, $VOW holders can chose to swap their VOW for v$ at a discount (in an auction mechanic) - Their $VOW is burned and the v$ re-minted. If too many v$ are in circulation in the event of Retailer default then the VSR (Variable stabilisation rate) is increased upwards to a maximum of 99% as required to destroy excess v$ supply. This situation occured in a resent attack whereby the attacker minted excess v$ and sold them to the market causing a sudden drop in v$ price. Although the market has immediately begun to recover VSR was increased to soak up supply.

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ETH BURN ADDRESS
{% endembed %}

{% embed url="<https://bscscan.com/token/0xF585B5b4f22816BAf7629AEA55B701662630397b?a=0x19b3f588bdc9a6f9ecb8255919b02f9adf053363>" %}
BNB BURN ADDRESS
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