> For the complete documentation index, see [llms.txt](https://pee-network.gitbook.io/pee-network-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pee-network.gitbook.io/pee-network-docs/burning-mechanism.md).
# Burning Mechanism
**BURN OF UNVERIFIED /UNCLIAMED COINS**
Tokens earned by users who failed to complete identity verification (kyc) within the required time frame, may be permanently removed from circulation, ensuring only active participants retain value.
**20% BURN OF ALL TRANSACTION FEE**
For every on-chain transaction, 20% of fees are burned, directly linking network usage to increase scarcity.
**OPTIONAL BURN FOR COMMUNITY INCENTIVE**
Scheduled or event based burns may be introduce through campaigns, milestones, or governance decisions to strengthen community participation.
**BURN OF DORMANT REWARDS**
Unclaimed rewards over a defined period may be burned to prevent inactive supply accumulation.
The burning mechanism ensures that as network activity grows, supply becomes more scarce, aligning value with real participation.
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