# Deflationary Burn Mechanism TAP integrates continuous burn mechanics at the protocol level, permanently reducing supply over time: * **50% of App Fee Profits Burned** – Half of all fee-derived profits from the DigiTap platform are used to buy back TAP on the open market and permanently burn them. * **Penalty Burns from Staking** – Early unstaking penalties are burned, increasing scarcity. * **Transaction-Triggered Burns** – Select high-volume payment flows trigger additional micro-burns. Over time, these mechanisms reduce circulating supply, creating upward pressure on scarcity and value, aligning the interests of users, long-term investors, and the protocol itself. By combining high-yield, non-inflationary staking with multiple burn channels, TAP ensures that every ecosystem interaction, from payments to staking, contributes to token scarcity, value preservation, and ecosystem health. --- # 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://whitepaper.digitap.app/digitap-ecosystem/loyalty-and-sustainability/deflationary-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.