> For the complete documentation index, see [llms.txt](https://five-pillars-token.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://five-pillars-token.gitbook.io/docs/five-pillars-token-5pt-burn-system/how-it-works.md).

# How it works

## How The Five Pillars Token (5PT) Burn-System Works

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

**The Burn-System** is a key utility of the Five Pillars Token (5PT) 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 Once burned, the tokens cannot be withdrawn, reclaimed, or restored, as they are irreversibly destroyed.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 Token (5PT)
* **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.