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

# Deflationary Model

The GAYA blockchain implements a deflationary model to maintain token scarcity and drive long-term value appreciation. This model leverages fee-burning mechanisms and scheduled reductions in token supply.

1. Transaction Fee Burns: A portion of the gas fee from every transaction is burned, permanently removing those tokens from circulation. This approach ties deflationary pressure directly to network activity, ensuring scalability aligns with token value.\
   \
   Formula for Burned Tokens per Transaction:

Burned Tokens = Base Fee × Gas Used

* Base Fee: Dynamic fee determined per block, adjusted based on network demand.
* Gas Used: Amount of computational resources consumed by the transaction.

Scheduled Token Burns: Periodic token burns are executed based on governance proposals and protocol milestones, targeting reserve tokens or collected fees.<br>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://gaya-blockchain.gitbook.io/gaya-blockchain/gayacoin/deflationary-model.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.