> For the complete documentation index, see [llms.txt](https://docs.powercity.io/beehive/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.powercity.io/beehive/workflow-and-participation-mechanics/nectar-burn-deflationary-engine-and-buy-back-system.md).

# NECTAR BURN: Deflationary Engine & Buy-Back System

Nectar Burn is the deflationary protocol that reduces the circulating supply of HONEY through a recurring buy-and-burn mechanism.

Key Mechanics:

1\. Distribution Trigger

     ○ After PLS is collected via Hive, the Nectar Burn contract receives its share.

     ○ A public function must be called to initiate distribution. This function can be

executed by any user and rewards the caller for participation.

2\. Automated Burn Window (Every 15 Minutes)

     ○ Every 15 minutes, the system becomes eligible to burn $769 worth of HONEY

using accumulated PLS.

     ○ If no one triggers the function during a window, the amount is carried forward to

the next period, increasing the burn power.

3\. Scheduled Purge Events

     ○ Starting on Day 69 from the BeeHive launch, and then every 99 days, a Nectar

Purge event occurs.

     ○ The total available PLS is split into 100 equal portions, each callable every 15

minutes to execute buy-and-burn actions.

4\. Buy & Burn Logic

     ○ PLS allocated to Nectar Burn is used to purchase HONEY tokens from DEX.

     ○ The purchased tokens are permanently burned, reducing supply and creating a

deflationary environment.