# Deflationary Mechanism

The XOR token is hard-capped at 1 billion units, with no additional minting allowed. This simple design choice is etched into smart contract logic, guaranteeing that supply cannot be inflated. Xorion will also incorporate a layered deflationary model that actively counterbalances emissions, redistributes value, and makes every circulating token more valuable as the network grows.

Certain actions within the Xorion Network will trigger automated token burns.

* A fixed percentage of cross-chain bridge fees will be burned on execution, reducing the overall supply with every interaction.
* When validators are slashed for protocol violations, the penalized XOR will be partially burned instead of entirely recycled.
* In governance, proposals could opt to allocate portions of unused budget or reclaimed incentives back to the burn pool via DAO vote.

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