> For the complete documentation index, see [llms.txt](https://docs.eitherway.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.eitherway.ai/token/economics/deflationary-engine.md).

# Deflationary Engine

The $EITHER deflationary engine operates across five mechanisms. All are funded by real platform revenue. Not by token allocation, treasury discretion, or token tax.

#### Revenue Sources for Burns and Buybacks

To avoid ambiguity, the following platform revenue streams explicitly fund the deflationary engine:

* Subscription fees (fiat, USDC, and $EITHER)
* Credit purchases across all payment methods
* Marketplace fees (20% platform fee on all transactions)
* Launchpad fees on every bonding curve token launch
* API usage fees

#### Burn & Buyback Table

| Mechanism          | Trigger Event                                                      | Rate / Effect                                             |
| ------------------ | ------------------------------------------------------------------ | --------------------------------------------------------- |
| Subscription Burn  | User pays subscription in $EITHER                                  | 10% burned instantly at point of payment                  |
| Credit Burn        | User purchases credits in $EITHER                                  | 15% burned instantly at point of purchase                 |
| Marketplace Burn   | Transaction completed in marketplace                               | 10% of platform fee burned per transaction                |
| Launchpad Fee Burn | App token launched via bonding curve                               | 20% of launchpad fee burned                               |
| Buyback & Lock     | Monthly, up to 35% of net protocol revenue after operational costs | $EITHER purchased from open market and locked long-term   |
| LP Lock            | App token launch, $EITHER paired in LP                             | Locked 1-5 years; locked LP earns trading fees throughout |

> All burn transactions are executed on-chain and publicly verifiable. Buyback and lock operations are funded from net protocol revenue after operational costs. Infrastructure, team, and platform expenses are deducted first. Buyback amounts and treasury balances are disclosed via a monthly treasury report published to the community.