# Deflationary mechanisms

Apart from setting a hard cap on FNX, we have also added deflationary measures to bring down the overall supply.

### **Buyback & Burn**

Every quarter, 30% of our [off-chain revenue](https://fortunx.gitbook.io/fortunx-whitepaper/tokenomics/project-earnings) will be allocated to buying back FNX tokens from the secondary market. These tokens will be burned, reducing the overall supply of FNX tokens.

### FNX Token Redeems

As users redeem their FNX tokens for gift cards and coupons and use them at our partner brands, we generate revenue again, of which 30% is burned.