> For the complete documentation index, see [llms.txt](https://caramelswap.gitbook.io/caramelswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://caramelswap.gitbook.io/caramelswap/innovations-features/hybrid-burning-mechanism.md).

# Hybrid Burning Mechanism

### Buyback Burning

* 5% deposit fee will be charged at staking.
* 80% of the deposit fee will be used to buyback and burn caramel.
* 20% of the deposit fee will be used as a dev & emergency fund.
* When Total Value Locked reaches 300K TVL, we will Buyback and Burn every time TVL increases by 150K.

### Transfer Tax Burning Mechanism

* Every transaction (send, swap, farming, etc.) of CARAMEL will be charged a 2% transfer tax.
* 2% transfer tax will be burned in every transaction.
* **Use 1,5%+** slippage to buy CARAMEL on PancakeSwap/CaramelSwap or other AMM.
* The transaction will fail if the slippage is less than 1%