> For the complete documentation index, see [llms.txt](https://veloriz-network-ltd.gitbook.io/veloriz-network-ltd-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://veloriz-network-ltd.gitbook.io/veloriz-network-ltd-docs/token-economics-and-roadmap/burning-mechanism.md). # Burning Mechanism Managing Unused and Transaction-Generated Supply The Veloriz burning mechanism is designed to create a transparent and measurable method for removing certain $VLR tokens from circulation over time. Rather than relying on arbitrary burns, the mechanism connects token burning to specific activities within the Veloriz ecosystem. Two primary sources are proposed for the initial burning framework: invalid or expired rewards and transaction fees generated through buying and selling activities. **Invalid, Expired & Unclaimed Rewards** Rewards distributed through the Veloriz ecosystem may be subject to eligibility requirements and expiration periods. Where a reward becomes invalid, expires, or remains unclaimed beyond the defined claim period, the corresponding allocation will no longer remain available for distribution. Subject to the applicable reward terms, these tokens may be permanently removed from circulation through the Veloriz burn mechanism. This prevents indefinitely accumulating unclaimed allocations from becoming a future source of unexpected supply. **Transaction Fee Burns** Veloriz will allocate 20% portion of transaction fees generated through eligible $VLR buying and selling activities toward token burning. Under this structure, every eligible transaction can contribute to the long-term reduction of circulating supply. The applicable fee percentage and burn allocation will be transparently defined within the protocol or platform rules before implementation. **Disclaimer** Veloriz will not position burning as a guarantee of price appreciation. A reduction in supply does not independently determine market value, which remains dependent on broader supply, demand and ecosystem conditions. > The Veloriz burn mechanism is designed to remove eligible $VLR from circulation through actual ecosystem activity—not through promises, but through verifiable execution. --- # 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 by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://veloriz-network-ltd.gitbook.io/veloriz-network-ltd-docs/token-economics-and-roadmap/burning-mechanism.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.