> For the complete documentation index, see [llms.txt](https://wp.gotmlabz.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wp.gotmlabz.io/token-launcher/buy-and-burn-nfts.md).

# Buy & Burn NFTs

### 🔥 Buy-Burn-NFT Feature

The **Buy-Burn-NFT** mechanism introduces a new way to create **scarcity and value** by combining NFT trading activity with the platform’s deflationary strategy.\
Instead of only burning tokens, NFTs can also be **purchased and permanently removed from circulation**.

***

#### 🟩 How It Works

1. **Trigger Through Fees:**
   * A portion of tax revenue is directed to **purchase selected NFTs from the market**.
2. **Strategic NFT Burn:**
   * Acquired NFTs are **permanently burned**, reducing the overall supply of that NFT collection.
   * This makes the remaining NFTs in circulation **rarer and potentially more valuable**.
3. **Configurable Rules:**
   * Founders can define what percentage of funds is used for **NFT buy-burn**.
   * The feature can target **floor NFTs** for maximum impact
4. **On-Chain Transparency:**
   * All NFT buy and burn events are **visible and verifiable on-chain**, increasing trust.

***

#### 🌟 Benefits

* **Supply Reduction:**\
  Lowers the total available NFTs in the collection, increasing scarcity.
* **Demand Loop:**\
  Every trade contributes to both token and NFT scarcity, encouraging participation.
* **Founder & Community Tool:**\
  Adds a strategic lever for founders to shape their collection’s economics and reward committed holders.
* **Narrative Value:**\
  Burn events can be tied to milestones, creating moments of excitement and attention for the community.

***

#### ⚙ Example

* A project sets **5% of trading tax** to buy-burn NFTs.
* Over time, the protocol purchases floor-priced NFTs from the marketplace and burns them.
* As the NFT supply decreases, the remaining tokens and NFTs become more scarce, creating a **dual deflationary loop**.


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