> For the complete documentation index, see [llms.txt](https://light-in-the-dark-1.gitbook.io/litd/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://light-in-the-dark-1.gitbook.io/litd/in-game-ecosystem/burning-mechanics.md).

# Burning Mechanics

## <mark style="color:orange;">Burn, Baby, Burn!</mark>

We all know the success of P2E games relies on the stability of the main currency. The best way to keep a token that is distributed as a reward stable is with effective burning mechanics. In this section, we'll go through the different ways the LITD ecosystem was built to keep $LIGHT deflationary.

### <mark style="color:orange;">**Genesis Mint Burn (25% of Total Supply)**</mark>**&#x20;🔥**

At the Genesis Mint, **25% of the total $LIGHT token supply** will be **permanently burned**.

**Effects of Genesis Burn:**

1. **Lower Initial Supply** – Makes remaining tokens more valuable
2. **Incentivizes Early Players** – Early adopters benefit from reduced inflation.
3. **Deflationary Mechanic** – Sets the stage for a **scarcity-driven economy**.

#### **How Does This Work?**

* When the **Genesis Mint event** happens, the entire 25% burn wallet will be sent to a **burn address**, making them unrecoverable.
* This prevents excessive initial token flooding, keeping the economy stable from Day 1.

### <mark style="color:orange;">**Burn-to-Upgrade Mechanic**</mark>**&#x20;🔄**

Players can **upgrade in-game buildings** and **boost their $LIGHT production**, but at a cost—**burning $LIGHT tokens**.

Every time you **upgrade a building**, a percentage of **$LIGHT is burned permanently**. Here’s an example:

| **Upgrade Level** | **$LIGHT Burned (%)**    | **Effect**               |
| ----------------- | ------------------------ | ------------------------ |
| **Level 1 → 2**   | X amount of $LIGHT       | +X% resource generation  |
| **Level 2 → 3**   | X amount of $LIGHT       | +X% resource generation  |
| **Level 3 → 4**   | X amount of $LIGHT       | +X% resource generation  |
| **Level 4 → 5**   | X amount of $LIGHT       | +X% resource generation  |
| **Level 5+**      | Dynamic based on economy | Special rewards & boosts |

#### &#x20;**Why is this mechanic powerful?**

1. **Encourages Progression** – Players must engage with the game and upgrade over time.
2. **Reduces Circulating Supply** – The more players upgrade, the scarcer $LIGHT becomes.
3. **Long-Term Stability** – Helps balance supply and demand dynamically.

## <mark style="color:orange;">A Sustainable Token Economy</mark>

By integrating **multiple burning mechanics**, *Light in the Dark* ensures that:\
✔️ **$LIGHT maintains long-term value**\
✔️ **Players are incentivized to hold & upgrade**\
✔️ **The game economy remains stable and deflationary**

**Continue on to get a full token distribution on the next page.**


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