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

# Deflationary Mech

The deflationary mechanism is in place at 2% monthly to create a balanced cycle and continuous demand to play and earn FDXD. The deflation triggers only for tokens that have been locked up for staking once they are returned back to a user’s wallet. So, if you decide to be a hodler for FDXD, your tokens will not be burnt sitting in your wallet. If a player isn’t striving for rewards and earning, they will notice their staking power consistently decreasing. This rewards consistent players and allows them to stay above the deflationary curve, resulting in higher passive earnings. EX: A wallet that staked 100 FDXD Month 1 would have around a \~88 balance at Month 7.

<figure><img src="https://2183942596-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8ISins3H0KDHCvTP4DI2%2Fuploads%2FjZhPRNYBa5AQrVo5yHbT%2Fimage.png?alt=media&amp;token=557a95ff-329c-4c6c-ae9f-c69a542a879f" alt=""><figcaption></figcaption></figure>