> For the complete documentation index, see [llms.txt](https://guildofheroes.gitbook.io/sight-tools/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guildofheroes.gitbook.io/sight-tools/token-info/token-burning-mechanism.md).

# Token Burning Mechanism

<figure><img src="/files/TOlCtDVQOLvtDSkl0WPg" alt=""><figcaption><p>Enhance your hero, fortify the economy. Each purchase burns tokens, ensuring a stable and valuable in-game currency.</p></figcaption></figure>

**GOH Token Burnstream Mechanics**

The GOH token burnstream is a fundamental economic mechanism within "Guild of Heroes," designed to balance the token supply and demand, thus contributing to the stability and potential appreciation of the GOH token's value. Here’s how the process works in detail:

**1. Player Purchases**:

* When a player spends $100 to purchase a new hero skin, there are two payment methods they can use, each influencing the burnstream differently.

**2. Payment Method 1 - Fiat Currency**:

* If a player uses fiat currency (e.g., paying with a Visa card), $50 of the transaction goes directly to the game's treasury.
* The remaining $50 is used to buy back GOH tokens from the centralized exchange. This buyback serves two purposes: it provides liquidity and supports the token's market price.

**3. Payment Method 2 - GOH Tokens**:

* Alternatively, players can opt to use GOH tokens directly for their purchase. If they choose this method, they would spend 10,000 GOH tokens for the new hero skin.
* Simultaneously, another 10,000 GOH tokens (equivalent to $100) are allocated from the game's treasury to be burned. This action effectively removes tokens from circulation, reducing the total supply.

**4. The Burning Process**:

* The allocated GOH tokens for burning are sent to a burn address, a wallet from which tokens can never be retrieved or spent, effectively removing them from the market.
* This burn address is publicly verifiable for transparency, ensuring trust in the burn process.

**5. Economic Impact**:

* By reducing the number of GOH tokens in circulation, the burn mechanism aims to create scarcity, potentially increasing each token's value over time as the game attracts more players and demand for tokens increases.
* The burning process is designed to happen continuously with every fiat transaction, aligning the long-term value of GOH tokens with the success and growth of the game.

**6. Sustainable Economy**:

* This burnstream system ensures a sustainable and player-centric economy within "Guild of Heroes," balancing the in-game utility of the GOH token with its investment potential.

The GOH token burnstream is just one of the innovative economic features in "Guild of Heroes" that ensures the game not only provides an exciting and engaging experience but also a robust economic model that benefits players and token holders alike.


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