# Token Burn Mechanism In Owlverse, multiple mechanisms are designed to continuously reduce token supply and establish a deflationary economic model that reinforces long-term value. #### 🔥 Egg Synthesis Burn When users synthesize new Eggs using tokens earned from mining (either still locked or pending withdrawal): * **80%** of the consumed tokens are **sent to the burn (blackhole) address** and permanently destroyed. * The remaining **20%** are allocated to the **New World Development Fund**, supporting future ecosystem growth. *** #### 🔥 XBOX Purchase Burn When users **purchase XBOX using tokens**, * **100%** of the consumed tokens are **burned**. *** As the computational ecosystem expands and user participation increases, these mechanisms will continuously reduce circulating supply. This creates a **sustainable deflationary model**, enhancing the overall health, scarcity, and long-term value of the Owlverse economy. --- # Agent Instructions: 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: ``` GET https://docs.owlverse.ai/new-world-economic-model/token-burn-mechanism.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.