> For the complete documentation index, see [llms.txt](https://moonlightbar.gitbook.io/moonlight-bar/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://moonlightbar.gitbook.io/moonlight-bar/cold-beer-token/automatic-burning.md).

# Burning Mechanism

## Passive Transfer Tax Burning

According to our tokenomics design, each transfer must pay a 6% transfer tax. All the transfer tax will be burned (sent to the black hole address) immediately.

Black Hole Address: [0x000000000000000000000000000000000000dEaD](https://bscscan.com/token/0x1f546ad641b56b86fd9dceac473d1c7a357276b7?a=0x000000000000000000000000000000000000dEaD)

## Buyback Fund

* We plan to set up a Buyback Fund for regular buyback and burning cBEER tokens. 
* The fund consists of two sources: Initial liquidity from pre-sale & deposit fees.  
* Every time TVL increases by $5M, we will inject money into the fund. 
* Buyback happens every 12 hours and will use 7.5%-15% of the fund each time.
* You can check the current fund balance on the homepage.
* We will post all the buyback & burn record on the "Buyback & Burn Record".
* Check the following chart for buyback details.

![](https://3715779410-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-Ma7VNrkiWv8S0qYBtdj%2F-MaBVRgnHT9DHBxtJKJE%2F-MaBqfonV2YsWjJvVV9A%2Fimage.png?alt=media\&token=304a3503-3054-419a-967b-e17738fa7499)

## Deposit Fees

* 4% deposit fee will be charged at staking.
* Buyback Fund will be added every 5M TVL.
* 35% of the deposit fee (4%) will be allocated to add into Buyback Fund.
* 50% of the deposit fee (4%) will be allocated as a dev & emergency fund.
* 15% of the deposit fee (4%) will be allocated for airdrop and marketing.

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