> For the complete documentation index, see [llms.txt](https://docs.polypump.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.polypump.app/documentation/how-it-works/burning-and-developer-rewards.md).
# Burning and Developer Rewards
## Polypump’s reward mechanism takes effect at the moment of payout:
1. A fixed percentage (for instance, 5% of the total losing pool) is **burned**. If bets were placed in $POLYPUMP, those tokens are permanently destroyed, reducing the overall supply. If bets were in SOL, the protocol may convert the fee into $POLYPUMP (via a swap) and then burn those tokens, ensuring that every market contributes to deflation of the $POLYPUMP token. This burn not only supports the token’s value but also serves as an incentive for long-term holders.
2. Another small percentage (e.g. 5%) is allocated as **developer rewards**. This cut is sent to the project’s treasury or a developer wallet. It funds ongoing development, maintenance, and could also be used to reward community contributors or the market creator. In the future, this might evolve into a community-governed treasury or a reward for the user who created the market (to encourage users to propose interesting markets).
### The remainder (\~90% of the pot) is distributed to the winners. Losers forfeit their stake entirely, but because the outcomes are binary and the process is transparent, participants understand the risk-reward tradeoff when betting. All transactions (bets, payouts, burns, and fees) occur on-chain, providing transparency and allowing anyone to verify the outcomes and reward distribution.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://docs.polypump.app/documentation/how-it-works/burning-and-developer-rewards.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.