> For the complete documentation index, see [llms.txt](https://polycow-finance.gitbook.io/polycow/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://polycow-finance.gitbook.io/polycow/tokenoomiks/deflationary-mechanincs.md).

# Deflationary Mechanincs

How we distribu

## **1- Deposit Fees Policy**

We will charge a **4% fee** for staking in non-native pools and farms. This fees will be splitted in the following way:

### 2% Buy-back, Burn, Redistribute

We will use the 50% of the fees to do **buybacks and burns**, to act when we consider that we need to reset our inflation or adequate the token price. We will **not announce** the buybacks before making them, you can always look at the fee address and check that they are being made daily randomly. This avoids instant dumps after price corrections. We will also use this fees to **fill in the prize pot** of the ["Mooney asks!"](/polycow/products/mooney-asks.md#introduction) mini game & further games when the prize for the next round is not interesting enough for the community.&#x20;

**MILK Layer Update**

At launch there was a **hyperinflation** that we could not foresee, and we suffered a masterful dump when farming began. That is why we changed our priorities and released the "Mooney asks!" game the day after the farm. This, and the announcement of the BUTTER layer, has made many people hold their MILK and even buy again to be able to play the minigame, or later farm BUTTER. It has also allowed our buybacks to be significant and we have been able to maintain the price day by day with small operations. We used also MILK to fill Mooney asks! prize in every round played until now.

**BUTTER Layer Update**

For BUTTER layer, this 2% remains the same. We will use it to do buyback & burn and fill games prizes.

### 2% Project

After studying the market, we have realized that one of the keys to the success of a yield farming system like the one we propose is in **advertising**. And the price of advertising in this world is unfortunately exorbitantly high. Therefore,we have to invest in it  in order to have an impact on this world, and that is why a part of the fees will go to marketing, advertising and possible partnerships with influencers and other platforms.\
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Furthermore, as explained in the introduction, we are a dedicated team of 5 people, each one dedicating as much time as the other to make the project go ahead. That time wasted and the headaches that the process can cause deserve a small reward to keep motivation active among all team members. Therefore, of this part of the fees we will also dedicate a part to **incentivize our team**.

If we want to grow and develop our final game, we will need more hands and more thinking heads, so in order to make our team grow we need to be able to hire resources, divide the workload, and contribute new visions to our final project.

## **2- Gaming & NFT policies**

If you have read the roadmap, you will have seen that we will offer a series of services in the form of games and nft features. These services will have certain costs or situations, which in any case, our team will not take any profits.\
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**Mooney asks! Diet result policy:**

As we will explain in detail in the[ game mechanics ](/polycow/products/mooney-asks.md)page later, we will **burn the 20%** of the accumulated to next round and, when Mooney is in Diet, we will **forward 75%** of the price for the next round and **burn** **25%**.

**Mooney profile NFTs:**

Profile NFTs will cost a TBD amount of MILKS, which we will **burn 100%** of them.

![](https://3931944670-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-Me2R2tydIpfbE08m2jA%2F-MfCMFdxXa-fBlRNsppu%2F-MfCSBcU03o9fwN-BRul%2Fpolycow_ilustracion_escena04.png?alt=media\&token=000d8e11-6572-41ec-b779-9abedd7e6316)

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