diff --git a/app/app.go b/app/app.go
index 1e76d2974..eca8c5457 100644
--- a/app/app.go
+++ b/app/app.go
@@ -90,6 +90,8 @@ import (
 	upgradekeeper "github.com/cosmos/cosmos-sdk/x/upgrade/keeper"
 	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
 
+	"github.com/iov-one/starnamed/x/burner"
+	burnertypes "github.com/iov-one/starnamed/x/burner/types"
 	"github.com/iov-one/starnamed/x/configuration"
 	"github.com/iov-one/starnamed/x/offchain"
 	"github.com/iov-one/starnamed/x/starname"
@@ -208,11 +210,17 @@ var (
 		govtypes.ModuleName:            {authtypes.Burner},
 		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
 		wasm.ModuleName:                {authtypes.Burner},
+		burnertypes.ModuleName:         {authtypes.Burner},
 	}
 
+	//NOTE: this was included from wasmd repo but the allowedReceivingModAcc variable was not used,
+	/*allowedReceivingModAcc = map[string]bool{
+		//distrtypes.ModuleName:  true,
+	}*/
+
 	// module accounts that are allowed to receive tokens
-	allowedReceivingModAcc = map[string]bool{
-		distrtypes.ModuleName: true,
+	allowedReceivingModules = map[string]bool{
+		burnertypes.ModuleName: true,
 	}
 )
 
@@ -481,6 +489,7 @@ func NewWasmApp(logger log.Logger, db dbm.DB, traceStore io.Writer, loadLatest b
 		transferModule,
 		configuration.NewAppModule(app.configKeeper),
 		starname.NewAppModule(app.starnameKeeper),
+		burner.NewAppModule(app.bankKeeper, app.accountKeeper),
 	)
 
 	// During begin block slashing happens after distr.BeginBlocker so that
@@ -491,7 +500,7 @@ func NewWasmApp(logger log.Logger, db dbm.DB, traceStore io.Writer, loadLatest b
 		upgradetypes.ModuleName, minttypes.ModuleName, distrtypes.ModuleName, slashingtypes.ModuleName,
 		evidencetypes.ModuleName, stakingtypes.ModuleName, ibchost.ModuleName,
 	)
-	app.mm.SetOrderEndBlockers(crisistypes.ModuleName, govtypes.ModuleName, stakingtypes.ModuleName, starname.ModuleName)
+	app.mm.SetOrderEndBlockers(crisistypes.ModuleName, govtypes.ModuleName, stakingtypes.ModuleName, burnertypes.ModuleName, starname.ModuleName)
 
 	// NOTE: The genutils module must occur after staking so that pools are
 	// properly initialized with tokens from genesis accounts.
@@ -611,7 +620,8 @@ func (app *WasmApp) LoadHeight(height int64) error {
 func (app *WasmApp) ModuleAccountAddrs() map[string]bool {
 	modAccAddrs := make(map[string]bool)
 	for acc := range maccPerms {
-		modAccAddrs[authtypes.NewModuleAddress(acc).String()] = true
+		moduleCanReceive, modulePresentInArray := allowedReceivingModules[acc]
+		modAccAddrs[authtypes.NewModuleAddress(acc).String()] = !(modulePresentInArray && moduleCanReceive)
 	}
 
 	return modAccAddrs
diff --git a/app/app_test.go b/app/app_test.go
index f92d3e4f4..5a6e1143b 100644
--- a/app/app_test.go
+++ b/app/app_test.go
@@ -5,12 +5,13 @@ import (
 	"os"
 	"testing"
 
-	"github.com/iov-one/starnamed/x/wasm"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 	abci "github.com/tendermint/tendermint/abci/types"
 	"github.com/tendermint/tendermint/libs/log"
 	db "github.com/tendermint/tm-db"
+
+	"github.com/iov-one/starnamed/x/wasm"
 )
 
 var emptyWasmOpts []wasm.Option = nil
@@ -45,7 +46,13 @@ func TestBlockedAddrs(t *testing.T) {
 
 	for acc := range maccPerms {
 		t.Run(acc, func(t *testing.T) {
-			require.True(t, gapp.bankKeeper.BlockedAddr(gapp.accountKeeper.GetModuleAddress(acc)),
+			var expected bool
+			if allowedReceivingModules[acc] {
+				expected = false
+			} else {
+				expected = true
+			}
+			require.Equal(t, expected, gapp.bankKeeper.BlockedAddr(gapp.accountKeeper.GetModuleAddress(acc)),
 				"ensure that blocked addresses are properly set in bank keeper",
 			)
 		})
diff --git a/scripts/integration/setup.sh b/scripts/integration/setup.sh
index 010ef3585..bb911f183 100755
--- a/scripts/integration/setup.sh
+++ b/scripts/integration/setup.sh
@@ -9,6 +9,7 @@ FEE=${DENOM_FEE:-tiov}
 CHAIN_ID=${CHAIN:-testing}
 MONIKER=${MONIKER:-node001}
 
+rm -f "$HOME"/.${BINARY}/config/genesis.json
 ${BINARY} init --chain-id "$CHAIN_ID" "$MONIKER" 2>&1 | jq .chain_id
 sed --in-place 's/timeout_commit = "5s"/timeout_commit = "1s"/' "$HOME"/.${BINARY}/config/config.toml
 sed --in-place 's/enable = false/enable = true/' "$HOME"/.${BINARY}/config/app.toml # enable api
diff --git a/scripts/integration/test/CLI.test.js b/scripts/integration/test/CLI.test.js
index dcc342026..38b8f9a8e 100644
--- a/scripts/integration/test/CLI.test.js
+++ b/scripts/integration/test/CLI.test.js
@@ -1,5 +1,5 @@
 import { Base64 } from "js-base64";
-import { gasPrices, cli, denomFee, denomStake, getBalance, memo, msig1, msig1SignTx, signAndBroadcastTx, signer, w1, w2, writeTmpJson, makeTx } from "./common";
+import { burner, cli, denomFee, denomStake, gasPrices, getBalance, memo, msig1, msig1SignTx, signAndBroadcastTx, signer, w1, w2, writeTmpJson, makeTx } from "./common";
 import compareObjects from "./compareObjects";
 import forge from "node-forge";
 
@@ -602,6 +602,7 @@ describe( "Tests the CLI.", () => {
       expect( resolved1.account.metadata_uri ).toEqual( undefined );
    } );
 
+
    it( `Should throw an error while querying the yield for less than 100k blocks`, async () => {
       try {
          cli(["query", "starname", "yield"]);
@@ -609,4 +610,22 @@ describe( "Tests the CLI.", () => {
          expect(e.message).toContain("not enough data")
       }
    } );
+
+
+   it( `Should burn tokens.`, async () => {
+      const signer = w1;
+      const amount = 1e6;
+      const supply0 = { balances: cli( [ "query", "bank", "total" ] ).supply };
+      const balance0 = cli( [ "query", "bank", "balances", signer ] );
+      const burned = cli( [ "tx", "send", signer, burner, `${amount}${denomFee}`, "--yes", "--broadcast-mode", "block", "--gas-prices", gasPrices, "--memo", memo() ] );
+      const supply = { balances: cli( [ "query", "bank", "total" ] ).supply };
+      const balance = cli( [ "query", "bank", "balances", signer ] );
+      const blackhole = cli( [ "query", "bank", "balances", burner ] );
+
+      expect( burned.txhash ).toBeDefined();
+      if ( !burned.logs ) throw new Error( registered.raw_log );
+      expect( +getBalance( supply ) ).toEqual( +getBalance( supply0 ) - amount );
+      expect( +getBalance( balance ) ).toBeLessThan( +getBalance( balance0 ) - amount); // less than to account for fees
+      expect( +getBalance( blackhole ) ).toBe( 0 );
+   } );
 } );
diff --git a/scripts/integration/test/common.js b/scripts/integration/test/common.js
index 52f708688..e23da5244 100644
--- a/scripts/integration/test/common.js
+++ b/scripts/integration/test/common.js
@@ -22,6 +22,7 @@ export const w1 = "star19jj4wc3lxd54hkzl42m7ze73rzy3dd3wry2f3q"; // w1
 export const w2 = "star1l4mvu36chkj9lczjhy9anshptdfm497fune6la"; // w2
 export const w3 = "star1aj9qqrftdqussgpnq6lqj08gwy6ysppf53c8e9"; // w3
 export const msig1 = "star1d3lhm5vtta78cm7c7ytzqh7z5pcgktmautntqv"; // msig1
+export const burner = "star1v7uw4xhrcv0vk7qp8jf9lu3hm5d8uu5ywlkzeg"; // burner
 
 const dirSdk = process.env.COSMOS_SDK_DIR || String( spawnSync( "go", [ "list", "-f", `"{{ .Dir }}"`, "-m", "github.com/cosmos/cosmos-sdk" ] ).stdout ).trim().slice( 1, -1 );
 
diff --git a/x/burner/abci.go b/x/burner/abci.go
new file mode 100644
index 000000000..c10867d44
--- /dev/null
+++ b/x/burner/abci.go
@@ -0,0 +1,21 @@
+package burner
+
+import (
+	"fmt"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+
+	"github.com/iov-one/starnamed/x/burner/types"
+)
+
+//TODO: we could add a test for this function
+
+//EndBlocker burns all the coins owned by the burner module
+func EndBlocker(ctx sdk.Context, supplyKeeper types.SupplyKeeper, accountKeeper types.AccountKeeper) {
+	moduleAcc := accountKeeper.GetModuleAccount(ctx, types.ModuleName)
+	if balance := supplyKeeper.GetAllBalances(ctx, moduleAcc.GetAddress()); !balance.IsZero() {
+		if err := supplyKeeper.BurnCoins(ctx, types.ModuleName, balance); err != nil {
+			panic(fmt.Sprintf("Error while burning tokens of the burner module account: %s", err.Error()))
+		}
+	}
+}
diff --git a/x/burner/doc.go b/x/burner/doc.go
new file mode 100644
index 000000000..8ecda3995
--- /dev/null
+++ b/x/burner/doc.go
@@ -0,0 +1,3 @@
+// Package burner contains the burner module, that burns all tokens sent
+// to its address (star1v7uw4xhrcv0vk7qp8jf9lu3hm5d8uu5ywlkzeg)
+package burner
diff --git a/x/burner/module.go b/x/burner/module.go
new file mode 100644
index 000000000..ace025f3d
--- /dev/null
+++ b/x/burner/module.go
@@ -0,0 +1,133 @@
+package burner
+
+import (
+	"encoding/json"
+	"fmt"
+
+	"github.com/cosmos/cosmos-sdk/client"
+	"github.com/cosmos/cosmos-sdk/codec"
+	cdctypes "github.com/cosmos/cosmos-sdk/codec/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	"github.com/gorilla/mux"
+	"github.com/grpc-ecosystem/grpc-gateway/runtime"
+	"github.com/spf13/cobra"
+	abci "github.com/tendermint/tendermint/abci/types"
+
+	"github.com/iov-one/starnamed/x/burner/types"
+)
+
+var (
+	_ module.AppModule      = AppModule{}
+	_ module.AppModuleBasic = AppModuleBasic{}
+)
+
+// AppModuleBasic defines the basic application module used by the burner module.
+type AppModuleBasic struct {
+	cdc codec.Marshaler
+}
+
+// RegisterLegacyAminoCodec registers the amino codec.
+func (b AppModuleBasic) RegisterLegacyAminoCodec(*codec.LegacyAmino) {
+}
+
+// RegisterGRPCGatewayRoutes registers the query handler client.
+func (b AppModuleBasic) RegisterGRPCGatewayRoutes(client.Context, *runtime.ServeMux) {
+}
+
+// Name returns the burner module's name.
+func (AppModuleBasic) Name() string { return types.ModuleName }
+
+// DefaultGenesis returns default genesis state as raw bytes for the burner module.
+func (AppModuleBasic) DefaultGenesis(codec.JSONMarshaler) json.RawMessage {
+	return nil
+}
+
+// ValidateGenesis performs genesis state validation for the burner module.
+func (b AppModuleBasic) ValidateGenesis(_ codec.JSONMarshaler, _ client.TxEncodingConfig, genesisData json.RawMessage) error {
+	if len(genesisData) > 0 {
+		return fmt.Errorf("invalid genesis data for module burner: should be empty")
+	}
+	return nil
+}
+
+// RegisterRESTRoutes registers the REST routes for this module.
+func (AppModuleBasic) RegisterRESTRoutes(client.Context, *mux.Router) {
+}
+
+// GetQueryCmd returns no root query command for this module.
+func (AppModuleBasic) GetQueryCmd() *cobra.Command {
+	return nil
+}
+
+// GetTxCmd returns the root tx command for this module.
+func (AppModuleBasic) GetTxCmd() *cobra.Command {
+	return nil
+}
+
+// RegisterInterfaces implements InterfaceModule
+func (b AppModuleBasic) RegisterInterfaces(cdctypes.InterfaceRegistry) {
+}
+
+// AppModule implements an application module for the burner module.
+type AppModule struct {
+	AppModuleBasic
+	supplyKeeper  types.SupplyKeeper
+	accountKeeper types.AccountKeeper
+}
+
+// NewAppModule creates a new AppModule object.
+func NewAppModule(supplyKeeper types.SupplyKeeper, accountKeeper types.AccountKeeper) AppModule {
+	return AppModule{
+		AppModuleBasic: AppModuleBasic{},
+		supplyKeeper:   supplyKeeper,
+		accountKeeper:  accountKeeper,
+	}
+}
+
+// Name returns the burner module's name.
+func (am AppModule) Name() string { return am.AppModuleBasic.Name() }
+
+// RegisterServices allows a module to register services
+func (am AppModule) RegisterServices(module.Configurator) {
+}
+
+// LegacyQuerierHandler provides an sdk.Querier object that uses the legacy amino codec.
+func (AppModule) LegacyQuerierHandler(*codec.LegacyAmino) sdk.Querier {
+	return func(ctx sdk.Context, path []string, req abci.RequestQuery) ([]byte, error) {
+		return nil, sdkerrors.Wrapf(sdkerrors.ErrUnknownRequest, "%s", path[0])
+	}
+}
+
+// RegisterInvariants registers the burner module invariants.
+func (AppModule) RegisterInvariants(sdk.InvariantRegistry) {}
+
+// Route returns the message routing key for the burner module.
+func (am AppModule) Route() sdk.Route {
+	return sdk.NewRoute(types.ModuleName, func(sdk.Context, sdk.Msg) (*sdk.Result, error) {
+		return nil, sdkerrors.Wrapf(sdkerrors.ErrInvalidRequest, "unknown request")
+	})
+}
+
+// QuerierRoute returns the burner module's querier route name.
+func (AppModule) QuerierRoute() string { return types.ModuleName }
+
+// BeginBlock returns the begin blocker for the burner module.
+func (AppModule) BeginBlock(sdk.Context, abci.RequestBeginBlock) {}
+
+// EndBlock returns the end blocker for the burner module. It returns no validator updates.
+func (am AppModule) EndBlock(ctx sdk.Context, _ abci.RequestEndBlock) []abci.ValidatorUpdate {
+	EndBlocker(ctx, am.supplyKeeper, am.accountKeeper)
+	return []abci.ValidatorUpdate{}
+}
+
+// InitGenesis performs genesis initialization for the burner module. It returns no validator updates.
+func (am AppModule) InitGenesis(ctx sdk.Context, _ codec.JSONMarshaler, _ json.RawMessage) []abci.ValidatorUpdate {
+	return []abci.ValidatorUpdate{}
+}
+
+// ExportGenesis returns the exported genesis state as raw bytes for the burner module.
+func (am AppModule) ExportGenesis(sdk.Context, codec.JSONMarshaler) json.RawMessage {
+	return am.DefaultGenesis(nil)
+}
diff --git a/x/burner/types/expected_keepers.go b/x/burner/types/expected_keepers.go
new file mode 100644
index 000000000..b711355f7
--- /dev/null
+++ b/x/burner/types/expected_keepers.go
@@ -0,0 +1,16 @@
+package types
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/x/auth/types"
+)
+
+type SupplyKeeper interface {
+	GetAllBalances(sdk.Context, sdk.AccAddress) sdk.Coins
+	BurnCoins(sdk.Context, string, sdk.Coins) error
+}
+
+type AccountKeeper interface {
+	GetModuleAddress(string) sdk.AccAddress
+	GetModuleAccount(sdk.Context, string) types.ModuleAccountI
+}
diff --git a/x/burner/types/keys.go b/x/burner/types/keys.go
new file mode 100644
index 000000000..b12dc9ed9
--- /dev/null
+++ b/x/burner/types/keys.go
@@ -0,0 +1,8 @@
+package types
+
+// Module names
+const (
+	// ModuleName is the name of the module
+	// the corresponding bech32 address is star1v7uw4xhrcv0vk7qp8jf9lu3hm5d8uu5ywlkzeg
+	ModuleName = "burner"
+)