> For the complete documentation index, see [llms.txt](https://whitepaper.getpaid.family/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.getpaid.family/usdget-economics/burn-and-buyback.md).

# Burn & Buyback

Explains proposed fee-funded burn and buyback mechanisms that purchase $GET for permanent removal or treasury-held potential staking yield.

Burn and buyback are separate proposed mechanisms. Both would use routed fees to purchase $GET, but the purchased tokens have different destinations.

{% hint style="warning" %}
Burn and buyback are separate proposed mechanisms, not active systems.
{% endhint %}

### Comparison

| Mechanism | Action   | Destination  | Intended effect                     |
| --------- | -------- | ------------ | ----------------------------------- |
| Burn      | Buy $GET | Dead address | Reduce circulating supply           |
| Buyback   | Buy $GET | Treasury     | Support the staking-yield mechanism |

### Burn

The proposed design allocates 10% of each routed fee to burn activity.

1. The protocol uses the allocation to purchase $GET.
2. It sends the purchased $GET to `0xdead`.
3. The tokens are permanently removed from circulation.

This creates a proposed permanent burn path linked to fee activity. It does not guarantee deflation, scarcity, or token appreciation.

### Buyback

The proposed design allocates 10% of each routed fee to buyback activity.

1. The protocol uses the allocation to purchase $GET.
2. It retains the purchased $GET in the protocol treasury.
3. The treasury balance is intended as a potential source for staking yield.

The proposed design does not define a staking-yield formula or guarantee yield.

### Fee allocation specification

The proposed default fee split is:

| Destination         | Proposed allocation |
| ------------------- | ------------------: |
| Creator             |                 60% |
| Burn                |                 10% |
| Buyback             |                 10% |
| Protocol            |                 10% |
| **Total specified** |             **90%** |
| **Unspecified**     |             **10%** |

{% hint style="danger" %}
The current model accounts for 90% of routed fees. The remaining 10% requires definition before implementation and is not assigned to burn, buyback, or another destination.
{% endhint %}


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