# Deflationary Mechanics In addition to the hardcap set on KIM, we also implemented some deflationary mechanics in order to reduce the total supply. ## Buy back & Burn A share of the protocol earnings is dedicated to buy back & burn KIM, in order to apply a continuous buying pressure on it. ## xKIM redeems When converting xKIM to KIM, if the vesting duration isn't the maximum, the xKIM:KIM ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the excess KIM will automatically be burned. {% hint style="info" %} For instance, if a user redeems 1000 xKIM with the minimal 15 days vesting duration, she will obtain a 1:0.5 ratio, and receive 500 KIM in the end. That means a total of 1000 - 500 = 500 KIM will be burned during the process. {% endhint %} ## xKIM deallocations When deallocating xKIM from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be of 0.5%. The corresponding KIM amount will automatically be burned. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.kim.exchange/tokenomics/deflationary-mechanics.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.