diff --git a/contracts/assetsup/src/detokenization.rs b/contracts/assetsup/src/detokenization.rs
index dc16c43..c6f2078 100644
--- a/contracts/assetsup/src/detokenization.rs
+++ b/contracts/assetsup/src/detokenization.rs
@@ -40,12 +40,13 @@ pub fn propose_detokenization(env: &Env, asset_id: u64, proposer: Address) -> Re
 }
 
 /// Execute detokenization if vote passed
+/// This will remove all tokens from circulation and clear tokenization records
 pub fn execute_detokenization(env: &Env, asset_id: u64, proposal_id: u64) -> Result<(), Error> {
     let store = env.storage().persistent();
 
     // Verify asset is tokenized
     let key = TokenDataKey::TokenizedAsset(asset_id);
-    let _: TokenizedAsset = store.get(&key).ok_or(Error::AssetNotTokenized)?;
+    let tokenized_asset: TokenizedAsset = store.get(&key).ok_or(Error::AssetNotTokenized)?;
 
     // Check if proposal is active
     let proposal_key = TokenDataKey::DetokenizationProposal(asset_id);
@@ -64,6 +65,65 @@ pub fn execute_detokenization(env: &Env, asset_id: u64, proposal_id: u64) -> Res
         return Err(Error::DetokenizationNotApproved);
     }
 
+    // Save total supply for event before clearing
+    let total_supply = tokenized_asset.total_supply;
+
+    // Clear all votes BEFORE removing TokenizedAsset (voting module needs it)
+    voting::clear_proposal_votes(env, asset_id, proposal_id)?;
+
+    // Get list of all token holders before clearing
+    let holders_list_key = TokenDataKey::TokenHoldersList(asset_id);
+    let holders = store.get::<_, soroban_sdk::Vec<Address>>(&holders_list_key)
+        .ok_or(Error::AssetNotTokenized)?;
+
+    // Remove all token holder records
+    for holder in holders.iter() {
+        let holder_key = TokenDataKey::TokenHolder(asset_id, holder.clone());
+        if store.has(&holder_key) {
+            store.remove(&holder_key);
+        }
+
+        // Remove any token locks
+        let lock_key = TokenDataKey::TokenLockedUntil(asset_id, holder.clone());
+        if store.has(&lock_key) {
+            store.remove(&lock_key);
+        }
+
+        // Remove unclaimed dividends
+        let dividend_key = TokenDataKey::UnclaimedDividend(asset_id, holder);
+        if store.has(&dividend_key) {
+            store.remove(&dividend_key);
+        }
+    }
+
+    // Remove token holders list
+    if store.has(&holders_list_key) {
+        store.remove(&holders_list_key);
+    }
+
+    // Remove transfer restrictions
+    let restriction_key = TokenDataKey::TransferRestriction(asset_id);
+    if store.has(&restriction_key) {
+        store.remove(&restriction_key);
+    }
+
+    // Remove whitelist
+    let whitelist_key = TokenDataKey::Whitelist(asset_id);
+    if store.has(&whitelist_key) {
+        store.remove(&whitelist_key);
+    }
+
+    // Remove token metadata
+    let metadata_key = TokenDataKey::TokenMetadata(asset_id);
+    if store.has(&metadata_key) {
+        store.remove(&metadata_key);
+    }
+
+    // Remove the tokenized asset record (this eliminates all tokens from circulation)
+    if store.has(&key) {
+        store.remove(&key);
+    }
+
     // Update proposal to executed
     let timestamp = env.ledger().timestamp();
     let executed_proposal = DetokenizationProposal::Executed(ExecutedProposal {
@@ -72,13 +132,10 @@ pub fn execute_detokenization(env: &Env, asset_id: u64, proposal_id: u64) -> Res
     });
     store.set(&proposal_key, &executed_proposal);
 
-    // Clear all votes
-    voting::clear_proposal_votes(env, asset_id, proposal_id)?;
-
-    // Emit event: (asset_id, proposal_id)
+    // Emit event: (asset_id, proposal_id, total_supply_removed)
     env.events().publish(
         ("detokenization", "asset_detokenized"),
-        (asset_id, proposal_id),
+        (asset_id, proposal_id, total_supply),
     );
 
     Ok(())
diff --git a/contracts/assetsup/src/tests/detokenization_new.rs b/contracts/assetsup/src/tests/detokenization_new.rs
index ac98fa1..ba7a0b9 100644
--- a/contracts/assetsup/src/tests/detokenization_new.rs
+++ b/contracts/assetsup/src/tests/detokenization_new.rs
@@ -188,3 +188,83 @@ fn test_detokenization_majority_threshold() {
     assert!(first_execute_err);
     assert!(second_execute_ok);
 }
+
+#[test]
+fn test_token_elimination_on_execution() {
+    let env = Env::default();
+    let contract_id = env.register(AssetUpContract, ());
+    let tokenizer = Address::generate(&env);
+    let holder2 = Address::generate(&env);
+    let proposer = Address::generate(&env);
+    let asset_id = 1000u64;
+
+    let (before_exists, after_exists, balance_cleared, holders_cleared) =
+        env.as_contract(&contract_id, || {
+            setup_tokenized_asset(&env, asset_id, &tokenizer);
+
+            // Transfer some tokens to create multiple holders
+            tokenization::transfer_tokens(&env, asset_id, tokenizer.clone(), holder2.clone(), 300)
+                .unwrap();
+
+            // Verify asset exists before detokenization
+            let before_exists = tokenization::get_tokenized_asset(&env, asset_id).is_ok();
+
+            // Propose detokenization
+            let proposal_id =
+                detokenization::propose_detokenization(&env, asset_id, proposer.clone()).unwrap();
+
+            // Both holders vote (100%)
+            voting::cast_vote(&env, asset_id, proposal_id, tokenizer.clone()).unwrap();
+            voting::cast_vote(&env, asset_id, proposal_id, holder2.clone()).unwrap();
+
+            // Execute detokenization
+            detokenization::execute_detokenization(&env, asset_id, proposal_id).unwrap();
+
+            // Verify tokens are removed from circulation
+            let after_exists = tokenization::get_tokenized_asset(&env, asset_id).is_ok();
+
+            // Verify balances are cleared
+            let balance1 = tokenization::get_token_balance(&env, asset_id, tokenizer.clone());
+            let balance2 = tokenization::get_token_balance(&env, asset_id, holder2.clone());
+            let balance_cleared = balance1.unwrap_or(0) == 0 && balance2.unwrap_or(0) == 0;
+
+            // Verify holders list is cleared
+            let holders_result = tokenization::get_token_holders(&env, asset_id);
+            let holders_cleared = holders_result.is_err();
+
+            (before_exists, after_exists, balance_cleared, holders_cleared)
+        });
+
+    // Assert asset existed before
+    assert!(before_exists);
+    // Assert asset no longer exists after detokenization
+    assert!(!after_exists);
+    // Assert balances are cleared
+    assert!(balance_cleared);
+    // Assert holders list is cleared
+    assert!(holders_cleared);
+}
+
+#[test]
+fn test_cannot_propose_after_execution() {
+    let env = Env::default();
+    let contract_id = env.register(AssetUpContract, ());
+    let tokenizer = Address::generate(&env);
+    let proposer = Address::generate(&env);
+    let asset_id = 1000u64;
+
+    let second_proposal_err = env.as_contract(&contract_id, || {
+        setup_tokenized_asset(&env, asset_id, &tokenizer);
+
+        // Propose and execute detokenization
+        let proposal_id =
+            detokenization::propose_detokenization(&env, asset_id, proposer.clone()).unwrap();
+        voting::cast_vote(&env, asset_id, proposal_id, tokenizer.clone()).unwrap();
+        detokenization::execute_detokenization(&env, asset_id, proposal_id).unwrap();
+
+        // Try to propose again after execution - should fail because asset is not tokenized
+        detokenization::propose_detokenization(&env, asset_id, proposer.clone()).is_err()
+    });
+
+    assert!(second_proposal_err);
+}