> For the complete documentation index, see [llms.txt](https://loopburn-sonic.gitbook.io/loopburn/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://loopburn-sonic.gitbook.io/loopburn/getting-started/aboutloopburn.md).

# About LoopBurn

* **What is LoopBurn?**\
  LoopBurn is a standard ERC-20 token with 18 decimals. It is a zero-tax, deflationary token featuring a unique mechanism that automatically burns tokens and boosts volume.
* **Why LoopBurn?**\
  Many tokens rely on taxing trades, which can hurt trading activity. LoopBurn instead encourages trading by automating burns and buybacks, making it attractive to liquidity providers and traders.

### How It Works

* **Automated Cycle Every 8 Hours:**\
  The Yield Reactor smart contract claims trading fees and withdraws 1% of protocol owned liquidity. It burns the $LBP portion and uses the paired token to buy back and recycle $LBP tokens until all value returns as trading volume, driving volume and deflation.
* **Benefits:**
  * Continuous supply reduction
  * Increased trading volume
  * Rewards liquidity providers with growing yields
  * Buybacks drive consistent upward pressure on token value
  * Flywheel effect:

    🔥 More volume → more fees → more burns → scarcer token → higher yield → more volume.

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