# Burning Mechanism

<figure><img src="https://3210251457-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMtoBdkHwrPfhWdsOfyeO%2Fuploads%2FwRW5XjGt9hwmJp7XBG0P%2Fimage.png?alt=media&#x26;token=aaa74eef-dd20-4a18-9624-efecd279bff0" alt=""><figcaption></figcaption></figure>

The burning mechanism of the IEX token is a crucial component of its token economic model, aiming to reduce the number of tokens in circulation, thus potentially increasing the scarcity and value of the remaining tokens. This mechanism is achieved through two main approaches: anti-fork burning and ecosystem burning. Here's an explanation of these two burning methods:

Anti-Fork Burning

### Mechanism Description:

During transactions, when a 10% slippage fee is generated from the trading of IEX tokens, this portion of the fee will not enter the usual revenue stream. Instead, this 10% slippage fee will automatically be used to purchase ecosystem tokens, which will then be burned.

### Purpose and Effect:

This automated burning response not only reduces the circulation of ecosystem tokens, increasing their scarcity, but also helps stabilize the trading market for IEX tokens, avoiding instability due to extreme market fluctuations.

### Ecosystem Burning

**Mechanism Description:** Within the IEX ecosystem, 10% to 30% of IEX tokens will be regularly used to purchase ecosystem tokens, which will then be burned. The specific percentage may be adjusted based on market demand and the healthy development of the ecosystem.

### Purpose and Effect:

The ecosystem burning mechanism directly extracts a certain percentage of tokens from the activities within the IEX ecosystem for burning, thereby reducing the total supply of ecosystem tokens. This approach not only increases the scarcity of tokens but also incentivizes users to participate more actively in various economic activities on the IEX platform because such participation contributes to the growth of the value of their held tokens.

### Impact of Burning Mechanism

**Increased Token Scarcity:** The burning mechanism increases the scarcity of tokens by reducing the circulation of tokens, theoretically raising the value of the tokens.

Price Stability: By eliminating some tokens from the market, the burning mechanism helps reduce price fluctuations, providing token holders with a more stable investment environment.

**Ecosystem Incentives:** The ecosystem burning mechanism encourages users to participate in the development of the IEX ecosystem. Through the use of platform services and participation in trading, users indirectly contribute to the increase in the value of tokens.
