> For the complete documentation index, see [llms.txt](https://merlindex.gitbook.io/merlin/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://merlindex.gitbook.io/merlin/community-roundtable/techniques-of-deflation.md).

# Techniques of Deflation

Here is a brief summary of the deflationary methods we employ

In addition to the hardcap that was established on MAGE, we also put in place deflationary measures to shrink the supply. 

To maintain a constant purchasing pressure on MAGE, a portion of the protocol's profits are set aside for buyback and burning. 

The ratio of stMAGE to MAGE will be less than 1:1 if the vesting length is less than the maximum, and it will be at least 1:0.5 if the vesting duration is greater than the maximum. 

The surplus of MAGE will be burned off immediately. 

If a user redeems 1000 stMAGE after the bare minimum 15 days of tenure, he will receive 500 MAGE (1:0.5 ratio). 

That equates to burning 500 (five hundred) MAGE. 

A deallocation fee is levied on the Plugin whenever stMAGE is deallocated. 

The percentage is negotiable in most contracts but averages 0.5%. 

The associated MAGE value will be destroyed immediately.