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

# Deflationary Model

To maximize the long-term value of the $MMLM token, we have implemented a token-burning mechanism that sets it apart from current token-burning methods implemented by DeFi 2.0 projects. Here is how it works:

**The** **Burn Wallet:** At the start, the burn wallet holds the largest stake in the network (5% of the total token supply), and is eligible for a 1% in $MMLM reward in accordance with the [Holder Rewards](/mmlm/mmlm-reward-model/holder-reward-usdmmlm-reward.md) model. As the very first wallet in the MMLM network, it receives rewards from the entire network but **NEVER claims tokens**. Therefore, a portion of each transaction's tax is automatically locked in the Burn Wallet, gradually reducing the overall token supply over time.

The token-burning mechanism enhances the value of the $MMLM token over the long term. It fosters stability, rewards long-term holders, and creates a robust environment for investments.

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