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

# No burn

## Why no burn?

Burning tokens has been a common practice in new cryptocurrencies (especially in Yield farming optimizers) in order to temporarily raise the coin price by reducing the supply artificially. We did not implement a burn tax for two main reasons:

1. Burning makes whales larger. After burning, the amount of coins held by holders relative to the total supply becomes larger.
2. Burning **is not needed to make a coin deflationary.** A fixed token supply is inherently deflationary because of natural causes such as lost wallets, forgotten passwords, etc.

![](/files/-Meo7BVD5q1rEDSoSPyD)