> For the complete documentation index, see [llms.txt](https://despend.gitbook.io/despend/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://despend.gitbook.io/despend/token/core-economic-mechanism.md).

# Core economic mechanism

### Turbine Extraction

Users can choose to pay a 5% fee to instantly withdraw their DSG dividend rewards using stablecoins like USDT/USDC. Half of this fee is used for publicly repurchasing and destroying DSG in the open market, while the other half is injected into liquidity pools. Functions: ① Meet users' liquidity needs; ② Create sustained buying pressure and deflationary momentum.

### Deflation mechanism (value consolidation)

The DSG deflation mechanism operates through four primary channels:&#x20;

1\. Burn: Destruction of funds through accelerated withdrawal of transaction fees.

&#x20;2\. Ecosystem Consumption: Burning DSG consumed by internal features .

&#x20;3\. Staking Locks: Temporarily freezing DSG staked to enhance membership tiers and dividend allocation.&#x20;

4\. Upgrade Channels: -Consumption Contribution: Accumulated spending generates consumption data-based DSG.

&#x20;-Holding Stakes: Locking specific amounts of DSG for defined periods. -Promotion Contribution: Effective users and spending driven by community growth. Equity Differentiation: -Dividend Allocation: Tiered weighting with maximum disparity for premium members. -Withdrawal Speed: Higher-tier members enjoy faster payout processing and lower transaction fees. -Governance Rights: Premium members hold greater voting influence and proposal authority.


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