# CWIF Token Economics

$CWIF employs Solana Token Extensions for a unique 4% auto-burn per on-chain transaction. This mechanism was built into the start of the contract to reduce the supply of Catwifhat $CWIF over time.

$CWIF's decentralized approach to burning tokens ensures a consistent 4% reduction from every on-chain transaction, with no authority behind the burn. This means that every DEX buy, DEX sell, and wallet transfer experiences a 4% fee, taken out from $CWIF's circulation forever. Unlike traditional methods that utilize a single burn wallet, $CWIF's burn mechanism keeps the burned tokens across all wallets that interact with $CWIF.

The burn methodology leverages Solana Token Extensions' advanced capabilities to create an efficient and transparent burn process, reinforcing the token’s decentralized and deflationary nature. This 4% fee mechanism is designed to gradually increase each holder's percentage of the circulating supply owned as more transactions take place.

**Disclaimer:** All burns come at the cost of a 4% burn fee to the user on every wallet transfer, and the deflationary nature of $CWIF does not mean that its price will rise.

*(page last updated June 14, 2024)*


---

# Agent Instructions: 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:

```
GET https://docs.cwifwiki.com/about-catwifhat/cwif-token-economics.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.