> For the complete documentation index, see [llms.txt](https://simon-chadwick.gitbook.io/eclipse-pad/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://simon-chadwick.gitbook.io/eclipse-pad/tokenomics/deflationary-model.md).

# Deflationary Model

At Eclipse Pad we understand the value of short-term, not just long-term ecosystem value capture which is the reason for building the rewards pool, but the shorter-term value capture is also important. This is why we have implemented a deflationary token model on Eclipse Pad. 

A portion of the fees collected across the platform will automatically go towards $ECLIP token buybacks.\
A portion of these tokens will then be burnt, taking them out of circulation permanently. The rest will go towards boosting the token distributions for staking.

### Buyback and Burn

The buyback and burn deflationary tokenomics will be an automatic process. The fees collected for the deflationary allocation (see [Fees & Royalties](/eclipse-pad/tokenomics/fees-and-royalties.md)) will be collected in a smart contract which automatically purchases back $ECLIP tokens. 25% of this bought back amount will be automatically burned and taken out of circulation.

The remainder of 75% of the bought back $ECLIP tokens will be distributed into the staking pool and used to bolster staking rewards.

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