> For the complete documentation index, see [llms.txt](https://wp.jacktoken.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wp.jacktoken.com/token/deflationary-model.md).

# Deflationary Model

The $JACK token's deflationary model provides a long-term stability-maintaining strategy by reducing the token supply through three main mechanisms:

<figure><img src="/files/IXHw8yWqOqsIn0dJKGZL" alt="" width="563"><figcaption></figcaption></figure>

### Monthly Buy-Backs and Burns

Each month, 5% of the project’s revenue from the Ecosystem Fund is allocated to buy back tokens from the open market. These tokens are then permanently burned, reducing the circulating supply and supporting the token’s deflationary model.

### Milestone-Based Burns (TBA)

We will introduce milestone-based burns tied to achieving specific goals within the ecosystem, such as reaching a certain number of users, transactions, or total value locked (TVL). These burns will be announced as the project progresses.

{% hint style="info" %}
The delivery and final form of the above functionalities will be subject to and performed in accordance with the ongoing regulatory, compliance, and legal assessment.
{% endhint %}


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