> For the complete documentation index, see [llms.txt](https://docs.rakelaunch.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rakelaunch.xyz/rake/tokenomics/burn-mechanism.md).

# Burn Mechanism

The source-defined $RAKE and $PONS market-buy burn flows and burn-address requirement.

RAKE burns are triggered through the protocol fee flow. They occur when harvest moves accumulated fees from relevant protocol sources into RakeVault.

RakeVault applies its fixed 70/15/15 distribution to the fees it receives. Two allocations produce market-buy-and-burn flows.

### $RAKE burn path

```
Accumulated Fees
    ↓
Harvest
    ↓
RakeVault
    ↓
15% for $RAKE
    ↓
Market Buy
    ↓
Burn
    ↓
Dead Address
```

The 15% allocation buys $RAKE on the market. The purchased $RAKE is then burned.

### $PONS burn path

```
Accumulated Fees
    ↓
Harvest
    ↓
RakeVault
    ↓
15% for $PONS
    ↓
Market Buy
    ↓
Burn
    ↓
Dead Address
```

The separate 15% allocation buys $PONS on the market. The purchased $PONS is then burned.

### Burn destination and verification

Both flows send purchased assets to:

```
0x000000000000000000000000000000000000dEaD
```

This makes the burn transactions independently verifiable onchain.

### Relationship to protocol activity

The mechanism follows a defined sequence:

```
Protocol activity creates fees
    ↓
Fees accumulate and enter RakeVault during harvest
    ↓
Part of the fees fund market buys
    ↓
Purchased $RAKE and $PONS are burned
    ↓
Burn transactions remain visible onchain
```

The burns are therefore tied to harvest and fee routing. They are not arbitrary manual token actions.

The source does not define a burn schedule, maximum burn amount, fixed tokens per harvest, deflation rate, supply forecast, or price impact.


---

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