# 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.

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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.

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* When $PURE's market price is below the Burn Price, the Burning Pool consumes assets, continuously fueling $PURE burns and driving its price up.

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This mechanism continuously boosts $PURE’s value and scarcity while providing a buffer when its price falls below the Burn Price.


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