# How it works

## How The Five Pillars Burn-System Works

> *Sustainable Returns. Community Power. Smart Contract Driven.*

**The Burn-System** is a key utility of the Five Pillars Token and plays a central role in stabilizing the ecosystem while rewarding committed participants. Through an automated, smart contract-based mechanism, burning reduces token supply, increases scarcity, and delivers daily bonuses to loyal holders.

***

## 1. Burn Mechanism

* **Invest & Burn**\
  When users burn their tokens, those tokens are permanently removed from circulation. This decreases the total circulating supply, increasing scarcity and potentially supporting long-term value. Once burned, the tokens cannot be withdrawn, reclaimed, or restored, as they are irreversibly destroyed.
* **Daily Rewards**\
  Users receive a daily reward of 0.3% on their burned amount — automated and executed by smart contract.
* **Access to Reward Pools**\
  Participants can qualify for one of nine Progressive Reward Pools (including exclusive whitelist-only pools), each offering proportional daily rewards based on the volume of burned tokens.

***

## 2. Pool Mechanics

### Entry **Requirements:**

To join a pool, the following conditions must be met:

* **Personal Investment:** Minimum staking volume in Five Pillars Tokens
* **Direct Referrals:** A set number of personally invited participants
* **Total Referred Volume:** Combined token volume from referred participants

<table><thead><tr><th width="67.52734375" align="center">Pool</th><th width="228.99609375">Personal Invest</th><th width="89.921875" align="center">Direct Referrals</th><th width="220.3984375">Total Direct Invest</th><th width="147.5703125">Daily Pool Share</th></tr></thead><tbody><tr><td align="center">1</td><td>550k Token</td><td align="center">1</td><td>550k Token</td><td>0.0175%</td></tr><tr><td align="center">2</td><td>1.45M Token</td><td align="center">3</td><td>1.45M Token</td><td>0.0175%</td></tr><tr><td align="center">3</td><td>3M Token</td><td align="center">5</td><td>6M Token</td><td>0.0175%</td></tr><tr><td align="center">4</td><td>5.5M Token</td><td align="center">10</td><td>11M Token</td><td>0.0175%</td></tr><tr><td align="center">5</td><td>14.25M Token</td><td align="center">15</td><td>28.5M Token</td><td>0.0175%</td></tr><tr><td align="center">6</td><td>28.5M Token</td><td align="center">20</td><td>85.5M Token</td><td>0.01%</td></tr><tr><td align="center">7</td><td>57M Token</td><td align="center">20</td><td>171M Token</td><td>0.01%</td></tr><tr><td align="center">8</td><td><strong>Whitelist Only (limited to 50 seats)</strong></td><td align="center">---</td><td>---</td><td><strong>0.02%</strong></td></tr><tr><td align="center">9</td><td><strong>Whitelist Only (limited to 80 seats)</strong></td><td align="center">---</td><td>---</td><td><strong>0.02%</strong></td></tr></tbody></table>

**Note:** Pools 8 & 9 are exclusively available to **Presale Participants** through a whitelist.

***

### Reward Structure:

* **Daily Pool Bonus:**
  * Seven pools are filled daily with **0.1075%** of the burned token volume (deposits).
  * Pools 1–5: **0.0175%** of the burned token volume.
  * Pools 6–7: **0.01%** of the burned token volume.
* **First-Level Rewards:**
  * Participants earn **0.025%** daily on the deposited amount from direct referrals.
* **Downline Rewards:**
  * Participants earn **0.00675%** daily per level on deposits from levels 2–9, unlocked starting at Pool 3.
* **Deferred Activation:**
  * Pools are only activated once at least one participant meets the requirements, preventing premature reward dumping.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://five-pillars-token.gitbook.io/docs/five-pillars-burn-system/how-it-works.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.