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What Is the Concept of a ‘Burning Tax’ on Transactions?

A burning tax is a small percentage fee levied on every transaction (buy, sell, or transfer) of the native token, which is then permanently removed from the circulating supply (burned). This mechanism is inherently deflationary.

The DAO implements it to constantly reduce the total token supply, which can help support the token's price and benefit the value of the treasury's holdings over time.

What Is the Purpose of a ‘Burn Mechanism’ in a Token’s Supply Model?
What Is the Economic Effect of ‘Burning’ the Base Fee?
How Does the Burning of the ‘Base Fee’ under EIP-1559 Affect the Supply of Ether?
What Is the Role of Transaction Fees in a Deflationary Staking Model?