> For the complete documentation index, see [llms.txt](https://verta-1.gitbook.io/verta-cloud/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://verta-1.gitbook.io/verta-cloud/verta-cloud-eng/publish-your-docs-3.md).

# Dynamic Burning Model

#### **Burning Mechanism**

VERTA tokens are burned during transactions, dynamically reducing the total supply. This creates scarcity and increases token value.

#### **How It Works:**

1. **Token Transfer Example:**
   * Transferring 100 tokens triggers a burn mechanism.
2. **Commission Calculation:**

   Formula:

   **Commission = Transaction Amount × (Total Supply ÷ 1,000,000)**

   * **Example:** If 10,000,000 tokens are in circulation:

     **100 × (10,000,000 ÷ 1,000,000) = 1 token burned.**
   * If the supply reduces to 5,000,000 tokens:

     **100 × (5,000,000 ÷ 1,000,000) = 0.5 token burned.**
   * Lower supply results in reduced commission, maintaining deflationary effects.
3. **Burning Process:**
   * The commission amount is automatically burned, reducing the total supply.

***

#### **Benefits of the Burning Model**

* **Active Token Usage:** Higher activity accelerates token scarcity.
* **Value Growth:** Reduced supply increases token worth.