> For the complete documentation index, see [llms.txt](https://gitbook.weave.financial/product-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gitbook.weave.financial/product-docs/tokenomic/usdweave-token/deflationary-mechanism.md).

# Deflationary mechanism

Whilst the maximum total supply of Weave tokens is set at 200,000,000, the token is also deflationary, meaning that coins will be burned from the outset.

Whenever someone buys/sells our $Weave token, a 2.5% fee is applicable. This fee is distributed in the following ways. You will need to set your slippage at 2.6% when you buy or sell $Weave tokens. 3% slippage should work for most of case.

* 1.5% redistribution to Weave staking pool (added to daily rewards pool)
* 0.5% tokens burned forever
* 0.5% to platform


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