> For the complete documentation index, see [llms.txt](https://docs.something.cool/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.something.cool/community-coins/community-contribution-how-it-works/burning.md).

# Burning

<figure><img src="/files/W8kOeMh4SXke0HWkLajS" alt=""><figcaption></figcaption></figure>

**Burning: The Most Underrated Yet Powerful Mechanism**

Token burning is perhaps one of the most underestimated yet most impactful long-term mechanics for any token.

Yes, **instant rewards for holders** are great—your community receives **tokens and SOL immediately**. But when part of the token supply is permanently burned, it acts like a delayed reward, continuously benefiting the holder's bags in the long run.

**Let’s break it down**

Imagine a token with a 5% Community Contribution, where 50% of it is allocated to burning:

* Suppose the token launches, grows to a **$10M Market Cap** and generates **$50M in weekly trading volume**.
* At that pace, **\~25% of the total supply is permanently burned** in just one week.
* These tokens are gone forever—they won’t re-enter the market, won’t be sold, and won’t cause selling pressure.

Now, imagine this effect **over a month, six months, or a year**. With the right trading volume and project growth, this mechanism can build long-term confidence in your community and create an insane deflationary effect.


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