> For the complete documentation index, see [llms.txt](https://degenverse.gitbook.io/degenverse-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://degenverse.gitbook.io/degenverse-docs/economic-model/burn-mechanism.md).

# Burn Mechanism

DegenVerse incorporates a token burn strategy to increase scarcity and potentially drive token value. The burn mechanism includes:

1. **Transaction Fee Burn** DegenVerse permanently burns 10% of each transaction fee, removing those tokens from circulation.
2. **Gaming Rewards Burn** To maintain Memecoin scarcity, 5% of each distributed reward in gaming scenarios is burned, reducing the circulating supply of $DVERSE.
3. **Platform Revenue Burn** DegenVerse allocates 3% of its total revenue for periodic buybacks and burns of $DVERSE, further limiting circulating supply and supporting long-term token value.
4. **Scheduled Burns** During the initial phase of token issuance and at regular intervals thereafter, large-scale burns will be conducted to enhance scarcity and reward holders.