Presumably, one eventually wears an engine out to the point that replacing parts is no longer viable.
What does one do with old engines? Do you take them somewhere to be recycled?
Scrap metal, any scrap yard will take it if its got no oil in it.
Or if you run HF class you just take it back with your warranty and get a new HF predator motor.
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Like Ronald said, you can scrap the engines without a ton of hassle. That’s probably the boring way to do it.
Some people will use the opportunity to do something else interesting with the motor. I’ve seen Yamaha’s opened up from 100cc to 125cc, we’ll probably see a KA built like that in not too long from someone. Wear out a 206 and it can be turned into a built animal, those things can get going pretty quick actually, but they have a tendency to try to blow up once they reach X30 speeds, just adds to the excitement.
If you’re of the creative persuasion, you could probably make some cool artwork/home furniture out of an engine. Side table, lamp, sculpture, I actually think it’d be super cool to have an exploded view of an engine encased in resin.
Something like this
I’ll probably end up using engines at the end of their life cycle to learn and practice building engines.
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Heaven
(20 characts)
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Where do dead engines go? They go on Facebook Marketplace as a national championship winning engine!
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Nah more like, Engine rebuilt fully 10min ago im selling bc i have a new one and the engine won the world cup and nationals, Vary good engine mint condition! price: 2500euro 
If it is an old LO 206 then it can be turned into a Super Stock or you could make it into animal motor for the dirt guys.
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don’t forget…with a fresh top…and only about 2 hrs since bottom build!
It’s so bad that when I tried to sell a real one, no one believed it. Funny part is, I offered to put them in contact with the director and the driver who used it, they still called it BS and wanted to see “paperwork”. Go figure what that means, I just gave up.
Most likely ended up in a backyard gokart, seized and left to rot like so many I’ve seen