# ACORN Supply, Buyback & Burn Mechanism

### ACORN Supply

Currently, ACORN is an inflationary token with an unlimited supply. However, inflation is inevitable as ACORN tokens are minted continuously. To slow inflation, we build buyback & burn mechanism to have control of the balance and manage better tokenomics.

### Buyback & Burning Mechanism

![](https://3142131988-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-Mf2A29BFOIIepIWRT5V%2F-Mi_MJhJF9k0PuBHLT81%2F-Mi_NOgNc6MoY43zKxuc%2Fbuyback%20%26%20burn.png?alt=media\&token=0cf7f8e5-67ff-416f-8159-52f249388245)

Here is the composition we build to buyback and burn ACORN tokens. In Acorn Finance, transaction fees include protocol fees while one transaction proceeds.

{% hint style="info" %}
ACORN buyback amount = ACORN market price in TTSwap / 0.025% protocol fees
{% endhint %}

All the ACORN buyback amount will be permanently burned once a day.

![](https://3142131988-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-Mf2A29BFOIIepIWRT5V%2F-Mi_MJhJF9k0PuBHLT81%2F-Mi_NdK_5h_bitOMxN-d%2Fbuybacknburn.png?alt=media\&token=1dd270c1-06e3-4013-8d14-6c5c03641caf)