> For the complete documentation index, see [llms.txt](https://docs.camelot.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.camelot.exchange/tokenomics/deflationary-mechanisms.md). # 🔥┃Deflationary mechanisms In addition to the hardcap set on GRAIL, we also implemented some deflationary mechanisms in order to reduce the total supply. ### Buy back & burn A share of the [protocol earnings](/tokenomics/protocol-earnings.md) is dedicated to buy back & burn GRAIL, in order to apply a continuous buying pressure on it. ### xGRAIL redeems When [converting xGRAIL to GRAIL](/tokenomics/xgrail-token/conversion-redeeming.md), if the vesting duration isn't the maximum, the xGRAIL:GRAIL ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the GRAIL excess will automatically be burned. {% hint style="info" %} For instance, if a user redeems 1000 xGRAIL with the minimal 15 days vesting duration, he will obtain a 1:0.5 ratio, and receive 500 GRAIL in the end. That means a total of 1000 - 500 = 500 GRAIL will be burned during the process. {% endhint %} ### xGRAIL deallocations When deallocating xGRAIL from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be of 0.5%. The corresponding GRAIL amount will automatically be burned. --- # 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.camelot.exchange/tokenomics/deflationary-mechanisms.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.