> For the complete documentation index, see [llms.txt](https://cryptoindex-1.gitbook.io/cryptoindex-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cryptoindex-1.gitbook.io/cryptoindex-whitepaper/more-details-about-indx-utility/burning.md).

# Burning

<figure><img src="/files/vmxj40TURrOEPBaVRytO" alt=""><figcaption></figcaption></figure>

Burning is a strategic mechanism employed by the Cryptoindex platform to maintain and enhance the value of the INDX token by reducing its total supply over time:

1. <mark style="color:blue;">**Percentage of Net Profit Allocation:**</mark>
   * <mark style="color:blue;">**Percentage:**</mark> The platform allocates 5.0% of its net profit to token burning.
   * <mark style="color:blue;">**Purpose:**</mark> This allocation aims to regularly reduce the circulating supply of INDX tokens, contributing to an increase in their scarcity and, potentially, their value.
2. <mark style="color:blue;">**Burning Regularity:**</mark>
   * <mark style="color:blue;">**Frequency:**</mark> Tokens are burned on a monthly basis.
   * <mark style="color:blue;">**Procedure:**</mark> At the end of each month, the platform calculates the net profit and allocates 5.0% of this profit to buy back INDX tokens from the market. These tokens are then permanently removed from circulation by sending them to a null contract address, ensuring they can never be retrieved or used again.
3. <mark style="color:blue;">**Transparency and Reporting:**</mark>
   * <mark style="color:blue;">**Public Announcements:**</mark> Every burning event will be publicly announced through the platform's official communication channels.
   * <mark style="color:blue;">**Burn Reports:**</mark> Detailed burn reports will be published after each event, outlining the number of tokens burned, the transaction details, and the updated circulating supply of INDX tokens.