> For the complete documentation index, see [llms.txt](https://docs.equilibria.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.equilibria.fi/token/eqb/deflation-mechanism.md).

# Deflation Mechanism

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In addition to the overall tokenomics, we have implemented several deflationary mechanisms to reduce the overall token supply:

1. Buyback and burn: In the future, we will allocate a certain proportion of protocol fees for buyback purposes, followed by burning those tokens.
2. During the redemption of xEQB, if the redeemed amount of EQB is not the full amount, the remaining EQB will be burned. For example, if 100 xEQB is redeemed after 2 weeks, only 50 EQB will be received, and the remaining 50 EQB will be burned.