> For the complete documentation index, see [llms.txt](https://jpt.jackpotter.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jpt.jackpotter.com/old/tokenomics/deflation-and-buybacks.md).

# Deflation & Buybacks

To ensure the long-term scarcity and value of the JPT token, the Jackpotter ecosystem incorporates a multi-faceted deflationary strategy. This includes six distinct burn mechanisms that are designed to reduce the total supply of JPT over time, with a target of burning between 4% and 22% of the total supply.

{% hint style="info" %}
Target burn range: between 4% and 22% of the total JPT supply.
{% endhint %}

## The 6 Burn Mechanisms

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### Sell Tax Buybacks (1.5%)

For the first 12 months, a 3% tax is applied to all JPT sales.

Sell tax structure (total: 3%):

* **1.5% → buyback & burn**
* **1.0% → treasury**
* **0.5% → liquidity**

Buyback execution:

* **Weekly** on Friday at **12:00 UTC**
* The 1.5% buyback portion is used to market-buy JPT.
* Purchased tokens are burned immediately.

Estimated burn (3 years): **10M–30M JPT**
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{% step %}

### Marketplace Fees (1%)

A 1% fee is charged on **marketplace purchases** (buy-side trades).\
100% of this fee is burned, linking marketplace activity to JPT deflation.

Estimated burn (3 years): **1M–3M JPT**
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{% step %}

### Special Tournament Entries (100%)

All entry fees for special tournaments, paid in JPT, are burned.\
This scales with competitive participation.

Estimated burn (3 years): **2M–8M JPT**
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{% step %}

### Unstaking Penalties (2%)

To discourage short-term behavior, early unstaking triggers a penalty.

* **2% of the unstaked amount is burned**
* Applies only to early exits from locked staking

Estimated burn (3 years): **1M–4M JPT**
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{% step %}

### Direct Utility Burns (1%)

A 1% burn fee is applied to selected utility purchases made with JPT:

* Free Spins / Free Bets
* Rakeback boosts
* XP multipliers
* Magic Boxes
* Special tournament / quest entries (utility type)

Estimated burn (3 years): **3M–9M JPT**
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{% step %}

### Community Burns

The Jackpotter governance model allows for community-voted burns, giving the community direct control over the token supply and enabling them to respond to market conditions.

Estimated burn (3 years): **8M–140M JPT**
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## Burn Projections

Our deflationary mechanisms are projected to burn a significant portion of the total JPT supply over the first three years.

| Timeframe |       Conservative |             Moderate |           Optimistic |
| --------- | -----------------: | -------------------: | -------------------: |
| Year 1    |     1.8% (18M JPT) |       3.5% (35M JPT) |       5.2% (52M JPT) |
| Year 2    |     2.6% (26M JPT) |       4.7% (47M JPT) |       7.0% (70M JPT) |
| Year 3    |     3.3% (33M JPT) |       6.4% (64M JPT) |       9.6% (96M JPT) |
| **Total** | **7.7% (77M JPT)** | **14.6% (146M JPT)** | **21.8% (218M JPT)** |