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

# Deflationary Mechanism

The primary goal of the Houdini token is to be a deflationary token with a steady long-term price increase for its holders.

### **A portion of the DEX revenue from trading fees is used to buy back and burn HDNI tokens.**

This also means that the larger the trading volume on Houdini DEX, the larger the buy-backs and burns. A portion of this buy-back & burn smart contract is set **automatically** and the other portion is set **manually** which allows us to build a buy-back pool that could be used as a marketing tool (when a milestone is accomplished a buy-back & burn will occur)

### **Lottery**

In many cases, the HDNI token is used as the primary game token for the Magic House games (Lottery)

A portion of the HDNI token that is won by the house (Houdini) will be sent to a token burn pool.

### **Prediction Games**

The prediction games act as a futures trading system that allows users to predict whether the price of an altcoin is going up or down. There will be some liquidations that happen. A portion of the liquidations revenue will be thrown into a buy-back and burn pool.

### **Staking and Farming (deposit and withdrawal fee)**

Every time a new staking and farming pool gets released, users who are early and those with the most amount of tokens staked/farmed will usually receive higher APR. There will be a small deposit fee and a high emergency withdrawal fee. Those fees will be taken in the native token of the stake/farm pool which is then traded for HDNI token. A portion of those HDNI tokens from the fees will be sent to a burn pool.