How To Set $2,455 on Fire By Steve Pikelny - 9/21/25 --- Project Overview Steve Pikelny physically burned $2,455 in US banknotes, issuing bUSD, an ERC20 token, at a 1:1 rate for the burned denomination. The burning involved 41 bills over 5.5 hours and was conceived over 3.5 years to create a tangible link between physical money destruction and a digital financial instrument. --- Is Burning Money Illegal? Burning US currency is a misdemeanor under 18 U.S.C. § 333, punishable by up to six months in prison or fines. The Secret Service enforces laws against mutilation of currency primarily to combat counterfeiting. Despite the law, prosecution for burning money is rare; artistic expression might be protected by the First Amendment. Steve viewed this as a clear federal crime but unlikely to be prosecuted. --- Tax Implications Burning one’s own money creates taxable income without a valid business expense deduction. To avoid this, Steve only accepted physical cash from participants who signed a Burn Agreement, making him perform a service on their money, not his own. Agreement covers: ownership, legal contingencies (death, fraud), and bill eligibility. Accountant advised this mirrors a service transaction (e.g., drilling holes in a bowling ball). Digital payments are not accepted for burning due to taxation complexity. --- Fundraising Funding was done in person, mainly during NFT NYC 2025, targeting an audience familiar with artistic money concepts. Raised about $2,000 in three days by pitching directly and using physical Burn Applications for consent. Process thrived where attendees were carrying cash and open to participating. --- The Burn Ceremony Inspired by past money-burning art but aimed for methodical, dignified destruction with clear evidence. Goals included: Complete destruction to prevent redemption by the US Bureau of Engraving & Printing. Clear link between physical destruction, bUSD issuance, and artwork (Proof of Burn NFT). Ceremony steps: Place bill face up showing serial number. Mark authenticity with counterfeit detection pen. Spray with alcohol as accelerant and cleansing. Ignite and fully burn bill. Reignite until fully destroyed. Submit blockchain transaction issuing bUSD and an NFT documenting the burn. --- Actually Burning the Money Challenges included filming a clear, aesthetic burn with phone camera (Pixel 4a). Needed proper oxygen flow for complete burns, achieved by curling the bill slightly and using tongs. Issues with heat warnings on phone; mitigated by a homemade heat shield and cooling breaks. Burned outdoors on a friend’s deck due to smoke and safety concerns, with fire blankets and water spray on hand. Wore black nitrile gloves for hygiene and style but adapted the blockchain interface to streamline transactions. Equipment grew to include long neck lighters, tripods, cords, dustpan, tape, etc. to manage logistics. --- $bUSD and the Proof of Burn NFTs bUSD is an ERC20 token on Ethereum layer 1; liquidity pool paired with USDC created. Proof of Burn NFTs document each bill’s denomination, serial number, timestamp, and burn session ID. NFTs serve dual purpose: artistic collectible and anti-fraud security for bUSD issuance. If fraudulent bUSD issued, NFT holders can burn NFT plus corresponding bUSD to mint replacement "Burnt bUSD." IPFS stores cropped, downscaled 1080p burn videos linked to NFTs. --- Lessons Learned Testing and iteration are critical when working outside expertise. Many issues solved by trial and error rather than initial cleverness. Meticulous preparation paid off to achieve desired documentation and legal/financial clarity. --- Can You Burn Some Money for Me? Interested participants can send cash bills with a