# Deflationary Mechanics

CartelFi's deflationary mechanics are designed to create consistent upward price pressure regardless of market conditions.

#### Revenue-Backed Buybacks

* Up to 100% of protocol revenue used for token buybacks
* Additional revenue sources include:
  * Trading fees
  * Staking fees
  * Partnership integrations
  * Early unstaking penalties

#### Burning Mechanism

* 50% of bought-back tokens permanently removed from circulation
* Burns executed automatically through smart contracts
* Verifiable on-chain with public burn address
* Burns increase proportional token ownership for all holders


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