> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pollyprize.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Token Burning 🔥

> How PollyPrize contributes to token ecosystems through burning.

import { Card } from '@mintlify/components';

A unique feature of PollyPrize is its integrated token burning mechanism. When you participate in many raffles using cryptocurrency (ETH or specific ERC20 tokens), a portion of your payment is used to automatically buy back and "burn" specific tokens!

## What is Burning?

Burning tokens means sending them to an unrecoverable blockchain address, often called the "dead address" (like `0x00...dEaD`). This effectively removes those tokens from the circulating supply forever.

## How it Works in PollyPrize

1. **Payment Received:** You pay for tickets using ETH or an Accepted Token.
2. **Amount to Burn:** Part of the payment is designated for burning.
3. **Target Burn Token:** Each raffle is configured with a specific **Burn Token** (e.g., \$POLLY, or sometimes another token like \$PENGU).
4. **Swap (if needed):** If you paid in ETH or a token different from the Burn Token, the contract uses a Decentralized Exchange (like Uniswap V2) to automatically swap the funds to burn into the designated Burn Token.
5. **Burn Execution:** The acquired Burn Tokens are immediately transferred to the DEAD\_ADDRESS.

At times, the buyback and burn might be executed manually after the raffle.

## Why Burn Tokens?

<Card icon="fire">
  By reducing the total circulating supply, token burning can potentially:

  * Increase the scarcity of the remaining tokens.
  * Support the token's value proposition (deflationary aspect).
  * Benefit all holders of the burned token (\$POLLY or partner tokens).
</Card>

When you participate in PollyPrize raffles, you're not just getting a chance to win, you're also contributing to the health of the associated token ecosystems! Check the raffle details to see which token(s) are being burned for that specific raffle.