# How does it work ?

As a community token, $BURN is designed to reward holders without hurting the price.

Here's how it works :

### 1) Tax collection :

On every buy and sell transactions of the $BURN token from the Uniswap liquidity pool, the protocol collects a small tax, which is accumulated into the reward pool. 

### 2) Burn mechanism :

When you choose to burn your tokens, you get paid the value of your $BURN tokens, in ETH, from the reward pool, as long as there is ennough ETH available in the pool to match your burn. 

Each burn cannot exceed 10% of the pool.

### 3) Deflationary and LP friendly :

With the use of our burning mechanism, you are not affected by the sell tax and the Uniswap liquidity pool isn't affected by the sell pressure. This reduces the number of sell transactions going through the liquidity pool, making it more sustainable.

It's a win/win mechanism as the total supply is burnt throughout the process, becoming a deflationary token AND the chart is not impacted by the jeets.


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