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# Staking and buyback

Staking and buyback are how protocol revenue flows back into $INFERRA. Supply is fixed, so the token gains value from use, and this is the path that turns activity into value for holders.

### The fee, and where it goes

Every trade pays a small protocol fee. That fee is split four ways: the largest share buys $INFERRA on the open market and burns it, a large share is paid to stakers, and the rest funds market liquidity and the treasury. In shares, that is 40% to buyback and burn, 30% to stakers, 20% to liquidity, and 10% to the treasury.

The burn is real and permanent. Buying $INFERRA back and destroying it removes supply for good, so more usage means fewer tokens over time.

### Staking

Stake $INFERRA to earn the stakers' share of fees. There is no lock-up, so you can unstake whenever you want, and your rewards are proportional to how much you have staked. Rewards are paid in real $INFERRA.

### Why it works

The supply cannot grow, because the mint authority is revoked. So the only ways the token supply moves are downward, through the burn, and sideways, as rewards are paid from real revenue. Value tracks usage: the more compute trades, the more fees flow, the more supply is burned, and the more stakers earn, with nothing diluting existing holders. See [The $INFERRA token](/inferra-docs/the-ecosystem/the-usdinferra-token.md) for the token itself.


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