To maintain a healthy tokenomics for the project, beyond risk management in delegation, three burning mechanisms have been developed:

1. Burning of partnership rewards (if no status)

If your status does not allow you to receive rewards from lower-ranking invitees, the rewards from them will be burned.

For example, if your status is Guru, it allows you to receive partnership rewards up to the 6th level deep. However, your referral structure has already expanded to the 8th level. In this case, you will not receive partnership rewards from users on the 7th and 8th levels at the time of delegation, and your reward will be automatically burned.

This mechanism encourages growth in the system's status hierarchy and positively impacts the reduction of hyperinflation risks during the payout of partnership rewards by burning excess from still unopened levels.

2. Burning during undelegating AXM (always)

With each AXM undelegation, you will incur a fee of 10% of the amount, which will be subject to immediate burning.

3. Burning of network fees (always)

All transactions involving AXM incur network fees. Of these fees, 30% are subject to burning, while the rest is distributed as delegation rewards (a share of network fees).

The conditions of these burning mechanisms can be adjusted through voting among validators to respond promptly to potential market condition changes. Any innovations will be accompanied by prior community notification.

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