> For the complete documentation index, see [llms.txt](https://docs.pure.cash/pure.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pure.cash/pure.cash/tokenomics/fixed-price-burning-mechanism.md).
# Fixed Price Burning Mechanism
The **Fixed Price Burning Mechanism (FPB)** is an innovative approach introduced by Pure.cash to address the challenge of empowering tokens in current DeFi projects. By continuously injecting protocol revenue (50% of total trading fees) into the Burning Pool and setting a reasonable Burn Price (adjustable by the DAO), the protocol allows anyone to burn $PURE through the Burning Pool and receive assets from the pool at the fixed Burn Price.
The FPB is fully implemented through on-chain smart contracts, eliminating the need for any manual operation or third-party risks. Additionally, this mechanism has two distinct features:
1\. **Reducing Token Supply:** The mechanism continuously burns tokens to decrease the overall supply, thereby increasing the value and scarcity of $PURE.
2\. **Floor Price Buffer:** A reasonable Burn Price is set by the DAO.
* When $PURE's market price is above the Burn Price, the Burning Pool accumulates assets.
* When $PURE's market price is below the Burn Price, the Burning Pool consumes assets, continuously fueling $PURE burns and driving its price up.
This mechanism continuously boosts $PURE’s value and scarcity while providing a buffer when its price falls below the Burn Price.
