# Deflationary Mechanism

To enhance token value over time, Vantix AI implements a deflationary mechanism through the following:

1. **Protocol Fee Burn:** A configurable percentage (e.g., 5%) of platform fees collected in VNTX is burned monthly.
2. **Buyback & Burn:** Net profits from premium service tiers are used to periodically buy back VNTX from the open market and burn tokens.
3. **Staking Penalties:** If stakers withdraw before minimum lock-up periods, a small penalty fee in VNTX is burned to discourage short-term speculation.

These mechanisms together reduce circulating supply and align stakeholder incentives with long-term platform growth and stability.


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