Burn-on-Transaction Fees

Burn-on-transaction fees are a mechanism where a percentage of the fees generated by every transaction on a network is permanently destroyed. This directly reduces the circulating supply of the native token, creating a deflationary effect that is proportional to the network's usage.

As the network becomes more popular and transaction volume increases, the rate of burning also increases, potentially leading to a supply squeeze. This mechanism is designed to capture value for token holders, as the scarcity of the asset grows alongside the utility of the network.

It aligns the interests of users, who pay the fees, with the interests of long-term holders, who benefit from the resulting supply reduction. This model has become popular in many high-throughput blockchain networks as a way to create sustainable economic value.