> For the complete documentation index, see [llms.txt](https://docs.buyholdearn.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.buyholdearn.com/earn-ecosystem/what-is-earn/key-benefits/deflationary-fee-structure.md).

# Deflationary Fee Structure

{% hint style="info" %}
EARN features a clear, 2% fee on Ethereum transactions that rewards holders and fuels a continuous burn. With no hidden fees and no taxes on non-Ethereum chains, it offers a transparent, long-term deflationary model that benefits holders and liquidity partners alike.
{% endhint %}

## Fair and Predictable Mechanics

The token $EARN on Ethereum implements a simple 2% fee on every transaction — whether it's a buy, sell, or transfer. The proceeds from this fee are redistributed proportionally to all holders. This distribution is handled by an advanced mathematical mechanism that ensures minimal gas fees, allowing holders to benefit without incurring excessive costs. The more $EARN tokens held, the greater the share of the fee earned over time, providing a consistent and transparent source of revenue share from the EARN ecosystem.

## Deflation by Design

EARN features a robust deflationary model driven by its burn mechanism. At launch, 50% of the total supply was sent to a burn address, which also receives a portion of the reflection rewards. This means with every transaction, tokens are burned, effectively reducing the circulating supply. This continuous deflationary process is similar to a buy-back-and-burn mechanism, which creates upward pressure on token scarcity and long-term value.

## Cross-Chain Zero-Fee Liquidity

On non-Ethereum chains, EARN is used as a 0% transfer fee token — enabling smooth, frictionless pairing with native tokens and project assets while still benefiting from arbitrage-driven volume and Ethereum-side deflation.


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