# Burning Mechanism ![](/files/0aKpo2fxY1mOdQEXdcgD) Burning tokens reduces the supply, making them more scarce. Because of the scarcity, prices may rise, resulting in a profit for investors. Since we have a Buy & Burn Mechanism, it also involves a buying process. For example, when someone deposits into the Farm, 4% of the deposit amount is used to buy GYMNET tokens and burn them. That way add constant buy pressure while reducing the total supply which has a long term stabilizing effect for the price of GYMNET. ![](/files/TcCtrBgSpVOExd1PCwTt) A powerful set of deflationary mechanisms is built into the protocol to ensure the long-term stability of GYMNET’s price. ### Immediate buy and burn:
PercentageGymNet Token Stability program - Buy and burnTokenTime frame
3%Sell Taxation CEX & DEX GymnetManually
3% Buy Taxation CEX Gymnet Manually
4%Farms deposit
(mandatory)		BNB, BUSD→GYMNETimmediate
8%Initial land sales (GYMSTREET)BUSD→GYMNETimmediate
8%Initial land upgrades (GYMSTREET)BUSD→GYMNETimmediate
8%Initial miner sales (GYMSTREET)BUSD→GYMNETimmediate
8%Initial aesthetic NFTs sales (GYMSTREET)BUSD→GYMNETimmediate
1%Royalties
(GYMSTREET)		BNB, BUSD→GYMNETimmediate
Altogether, the buyback and burn program can generate thousands of dollars’ worth of demand for GYMNET monthly even in the early stages. The goal is not to pump the GYMNET price but rather to keep it stable or growing at a stable slow rate, regardless of the market conditions; thus the important role of the linear buybacks. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.gymnetwork.io/introduction/burning-mechanism.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.