# Burning Mechanism

## Passive Transfer Tax Burning

According to our tokenomics design, each transfer must pay a 5% 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 RUM tokens. 
* The fund consists of two sources: Initial liquidity from pre-sale & deposit fees.  
* Every 12 hours, 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".

## Deposit Fees (1% - 2%)

* 1% - 2% deposit fee will be charged at staking.
* Buyback Fund will be added every 12 hrs.
* 0.5% deposit fee will be allocated to add into RUM Buyback Fund.
* 0.5% deposit fee will be allocated to add into RUM Buyback Fund.
* Other deposit fee will be allocated as a dev & emergency fund.