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

# The Deflationary Mechanics

The deflationary mechanics imply automatic LP acquisition, reflection, and burn. Every transaction is being taxed a 10% fee, so that:

* 5% fee is redistributed to all existing holders;&#x20;
* The other 5% is split so that half of it is exchanged to BNB and paired up with the other half which stays in $PMON, becoming a liquidity pair on Pancake Swap.
