# Deflationary Mechanisms

While BTCM has a fixed supply, several mechanisms create deflationary pressure:

**Transaction Fees** - A portion of transaction fees on the mainnet may be burned, reducing circulating supply over time.

**Validator Requirements** - Validators must lock BTCM tokens, removing them from circulation.

**No Inflation** - Unlike proof-of-stake chains with infinite inflation, BTCM supply is permanently capped at 21 million.


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