I remember that there was a strange cultural practice among certain indigenous groups (In Canada, I think?) where they deliberately destroyed their own possessions to signal status, but I cannot find it on Google.

Can anyone help me?

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Thanks to @pilesofskulls : the answer is Potlatch, a custom of the Chinook people and many other small tribes and "nations" from aboriginal America. https://en.wikipedia.org/wiki/Potlatch 

"A potlatch involves giving away or destroying wealth or valuable items in order to demonstrate a leader's wealth and power."

"In the potlatch, the host in effect challenged a guest chieftain to exceed him in his 'power' to give away or to destroy goods. If the guest did not return 100 percent on the gifts received and destroy even more wealth in a bigger and better bonfire, he and his people lost face