> For the complete documentation index, see [llms.txt](https://project-gptx.gitbook.io/gptx-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://project-gptx.gitbook.io/gptx-whitepaper/token-utility/burn-mechanism.md).

# Burn Mechanism

GPTX’s ecosystem features a unique burn mechanism vital to the platform's native token, $GPTX. This mechanism automatically burns a percentage of each fee or revenue that GPTX’s tools & utilities generate, making $GPTX a deflationary token by nature. Thus reducing the overall supply of $GPTX, and increasing its scarcity. For example, when a user spends 10 $GPTX for each request of GPTX's AI protocol, a percentage of that (i.e 2 $GPTX) is burnt out of the token supply.

#### How does the burn apply in GPTX?

The burning mechanism applies to all transaction income within GPTX's ecosystem, including fees for AI access and other revenue generated by the platform's various tools and utilities such as the marketplace and launchpad. Whenever someone uses our proprietary AI Agent, transact in the marketplace or get involved with dealflows in the launchpad they contribute to the platform's growth and decrease the $GPTX in circulating supply.

The balance of the income generated from that transaction is used for the growth and sustainability of the GPTX platform. This includes funding for development, marketing, and other initiatives set out in this whitepaper to drive growth and improve the platform.

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