# Burn Mechanisms

How $zer0 becomes deflationary over time.

***

## 🔥 Burn Sources

| Mechanism         | Rate     | Est. Annual Burn (1M users) |
| ----------------- | -------- | --------------------------- |
| Agent fees        | 20%      | 730K $zer0                  |
| Cross-chain exits | 2%       | 400K $zer0                  |
| Premium features  | 30-100%  | 150K $zer0                  |
| Treasury buybacks | Variable | 1.2M $zer0                  |
| **Total**         | -        | **\~2.5M $zer0/year**       |

***

## 📉 Supply Projection

| Year | Emissions | Burns | Net Change | Circulating |
| ---- | --------- | ----- | ---------- | ----------- |
| 2025 | 2.1M      | -500K | +1.6M      | 7.6M        |
| 2026 | 1.7M      | -2M   | -300K      | 7.3M        |
| 2027 | 1.3M      | -2.8M | -1.5M      | 5.8M        |
| 2028 | 840K      | -3.2M | -2.4M      | 3.4M        |

**Result:** Deflationary from Year 2 onwards

***

## 💎 Impact on Value

**Scarcity + Growing Utility = Price Appreciation**

* Fewer tokens available
* More users demanding them
* 80% staked (locked up)
* Only 20% liquid supply

***

{% hint style="success" %}
**All burns are permanent and verifiable on-chain.**
{% endhint %}


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