diff --git a/packages/core/src/builder/transactionBuilder.spec.ts b/packages/core/src/builder/transactionBuilder.spec.ts
index f9fa8fd4..28af9736 100644
--- a/packages/core/src/builder/transactionBuilder.spec.ts
+++ b/packages/core/src/builder/transactionBuilder.spec.ts
@@ -157,7 +157,7 @@ describe("basic construction", () => {
     expect(builder.settings.maxTokensPerChangeBox).toBe(MAX_TOKENS_PER_BOX);
 
     builder.configure((settings) => {
-      settings.allowTokenBurn(true).setMaxTokensPerChangeBox(10);
+      settings.allowTokenBurning(true).setMaxTokensPerChangeBox(10);
     });
 
     expect(builder.settings.canBurnTokens).toBeTruthy();
@@ -999,7 +999,7 @@ describe("Token burning", () => {
         })
       )
       .payFee(RECOMMENDED_MIN_FEE_VALUE)
-      .configure((settings) => settings.allowTokenBurn(true)) // explicitly allow token burning
+      .configure((settings) => settings.allowTokenBurning(true)) // explicitly allow token burning
       .build();
 
     expect(transaction.outputs).toHaveLength(2);
@@ -1054,7 +1054,7 @@ describe("Token burning", () => {
       .from(inputs)
       .to(new OutputBuilder(outputValue - 1000000n, a1.address)) // will try to burn 1000000n
       .payFee(RECOMMENDED_MIN_FEE_VALUE)
-      .configure((settings) => settings.allowTokenBurn(true));
+      .configure((settings) => settings.allowTokenBurning(true));
 
     expect(() => {
       builder.build();
diff --git a/packages/core/src/builder/transactionBuilderSettings.spec.ts b/packages/core/src/builder/transactionBuilderSettings.spec.ts
index 6917f825..eba0ac44 100644
--- a/packages/core/src/builder/transactionBuilderSettings.spec.ts
+++ b/packages/core/src/builder/transactionBuilderSettings.spec.ts
@@ -4,16 +4,38 @@ import { TransactionBuilderSettings } from "./transactionBuilderSettings";
 describe("Transaction builder settings", () => {
   it("Should hold defaults on constructing", () => {
     const settings = new TransactionBuilderSettings();
-    expect(settings.canBurnTokens).toEqual(false);
-    expect(settings.maxTokensPerChangeBox).toEqual(MAX_TOKENS_PER_BOX);
+    expect(settings.canBurnTokens).toBe(false);
+    expect(settings.canBurnTokensFromPlugins).toBe(false);
+    expect(settings.maxTokensPerChangeBox).toBe(MAX_TOKENS_PER_BOX);
   });
 
   it("Should reflect changes", () => {
     const settings = new TransactionBuilderSettings()
-      .allowTokenBurn(true)
+      .allowTokenBurning(true)
+      .allowTokenBurningFromPlugins(true)
       .setMaxTokensPerChangeBox(50);
 
-    expect(settings.canBurnTokens).toEqual(true);
-    expect(settings.maxTokensPerChangeBox).toEqual(50);
+    expect(settings.canBurnTokens).toBe(true);
+    expect(settings.canBurnTokensFromPlugins).toBe(true);
+    expect(settings.maxTokensPerChangeBox).toBe(50);
+
+    settings.allowTokenBurning(false);
+
+    expect(settings.canBurnTokens).toBe(false);
+    expect(settings.canBurnTokensFromPlugins).toBe(true);
+  });
+
+  it("Should allow token burning from plugins if it's globally allowed", () => {
+    const settings = new TransactionBuilderSettings().allowTokenBurning(true);
+
+    expect(settings.canBurnTokens).toBe(true);
+    expect(settings.canBurnTokensFromPlugins).toBe(true);
+  });
+
+  it("Should allow token burning only from plugins context", () => {
+    const settings = new TransactionBuilderSettings().allowTokenBurningFromPlugins(true);
+
+    expect(settings.canBurnTokens).toBe(false);
+    expect(settings.canBurnTokensFromPlugins).toBe(true);
   });
 });
diff --git a/packages/core/src/builder/transactionBuilderSettings.ts b/packages/core/src/builder/transactionBuilderSettings.ts
index 9053cd8e..f41bf5b4 100644
--- a/packages/core/src/builder/transactionBuilderSettings.ts
+++ b/packages/core/src/builder/transactionBuilderSettings.ts
@@ -3,10 +3,12 @@ import { MAX_TOKENS_PER_BOX } from "../models";
 export class TransactionBuilderSettings {
   private _maxDistinctTokensPerChangeBox: number;
   private _allowTokenBurn: boolean;
+  private _allowTokenPluginFromPlugins: boolean;
 
   constructor() {
     this._maxDistinctTokensPerChangeBox = MAX_TOKENS_PER_BOX;
     this._allowTokenBurn = false;
+    this._allowTokenPluginFromPlugins = false;
   }
 
   public get maxTokensPerChangeBox(): number {
@@ -17,15 +19,34 @@ export class TransactionBuilderSettings {
     return this._allowTokenBurn;
   }
 
+  public get canBurnTokensFromPlugins(): boolean {
+    return this.canBurnTokens || this._allowTokenPluginFromPlugins;
+  }
+
+  /**
+   * Define max number of distinct tokens per change box
+   */
   public setMaxTokensPerChangeBox(max: number): TransactionBuilderSettings {
     this._maxDistinctTokensPerChangeBox = max;
 
     return this;
   }
 
-  public allowTokenBurn(allow: boolean): TransactionBuilderSettings {
+  /**
+   * Allows or denies token burning from all contexts
+   */
+  public allowTokenBurning(allow: boolean): TransactionBuilderSettings {
     this._allowTokenBurn = allow;
 
     return this;
   }
+
+  /**
+   * Allows or denies token burning **only** from plugins context.
+   */
+  public allowTokenBurningFromPlugins(allow: boolean): TransactionBuilderSettings {
+    this._allowTokenPluginFromPlugins = allow;
+
+    return this;
+  }
 }