> For the complete documentation index, see [llms.txt](https://docs.augment.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.augment.net/overview/tokenomics/burn-mechanism.md). # Burn Mechanism Augment employs a systematic coin burn mechanism designed to enhance scarcity and value appreciation of the AUG token over time. This mechanism utilizes revenues generated within the Augment ecosystem to purchase and burn AUG tokens, thereby reducing the circulating supply and creating deflationary pressure on the token's value.\ \ By tying the buy-and-burn mechanism to revenue generation, Augment aligns the economic incentives of the AUG token holders with the platform's success. As the platform grows and generates more revenue, more tokens are burned, potentially increasing the value of remaining tokens. The amount of AUG tokens burned is adjusted dynamically based on market conditions and the price of AUG tokens. This ensures that the burn mechanism remains responsive to market dynamics, effectively managing the supply to support token value appreciation. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.augment.net/overview/tokenomics/burn-mechanism.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.