> For the complete documentation index, see [llms.txt](https://docs.libertyswap.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.libertyswap.finance/liberty-launchpad/buy-back-and-burn.md).

# Buy Back and Burn

This is the defining mechanic of Liberty Launchpad. There are **two distinct burn mechanisms** — do not confuse them. This page covers the automatic one; see [Manual Burn](/liberty-launchpad/buy-back-and-burn/manual-burn.md) for the other.

## 🔥 Automatic Burn From Trading Fees

*Runs by itself — nothing for you to do.*

**Every buy and every sell is charged 1% in PLS. That PLS is immediately spent buying the token on the curve, and everything it buys is destroyed within the same transaction.**

Step by step, when you hit Buy:

{% stepper %}
{% step %}

## Send PLS to the contract

You send PLS to the contract.
{% endstep %}

{% step %}

## Fee is taken and tokens are bought

The contract takes 1% off the top; the remaining 99% buys tokens for you at the curve price.
{% endstep %}

{% step %}

## Tokens arrive in your wallet

Your tokens arrive in your wallet.
{% endstep %}

{% step %}

## The fee buys and burns tokens

**Then** the contract takes that 1%, buys tokens for itself, and burns every one of them.
{% endstep %}
{% endstepper %}

Selling works the same way: the curve computes what you are owed, the contract keeps 1%, pays you 99%, and spends that 1% buying and burning.

### Why This Mechanism Can Be Trusted

| Property                                                    | What It Means for You                                                                                                                              |
| ----------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |
| The money never leaves the contract                         | That 1% stays in the reserve — exactly where it would have gone if it had never been charged. The reserve still covers everyone who wants to sell. |
| No intermediate wallet, no escrow                           | Nobody holds it, nobody forgets to press a button, nobody changes their mind. The burn happens in the same transaction.                            |
| The fee buys *after* your order fills                       | The contract buys at the price your own trade just created. **The Launchpad never steps in front of the trade it is charging you for.**            |
| Never touches the 180 million tokens reserved for liquidity | The DEX allocation stays whole. See [Tokenomics](/liberty-launchpad/overview/tokenomics.md).                                                       |
| Cannot be blocked                                           | There is no recipient address to refuse delivery, so nobody can break it.                                                                          |

**How much actually burns:** running a full curve from launch to graduation burns roughly **0.80% of total supply** (\~8 million tokens). With heavy back-and-forth trading it reaches about **1.93%**.

{% hint style="info" %}
This mechanism ends at graduation. Once the token lists on Liberty Swap, the Launchpad is no longer in the path of a trade, so there is no more burn fee. From then on, supply only shrinks if someone burns manually — see [Manual Burn](/liberty-launchpad/buy-back-and-burn/manual-burn.md).
{% endhint %}