# 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.
