> For the complete documentation index, see [llms.txt](https://whitepaper.pwrup.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.pwrup.xyz/tokenomics/deflationary-strategies.md).

# Deflationary Strategies

Our automated market maker (AMM) diminishing returns operates as a ward against deflation. As the AMM system reduces the distribution of $PWR the more that it's claimed, the value of $PWR already in circulation improves to help counter inflation.

The more $PWR claimed the harder it will be to get except through purchasing from the circulating supply, which increases demand for circulating supply as players can't grind to the amount they need very well over time.

Spending $PWR also removes it from circulation to an extent, acting deflationary. Some portion of this goes to the treasury and some to the game AMMs. The amount that goes to the AMMs takes a long time to realistically circulate back in.

The combination of reduced earning and reduced circulation in relation to demand (e.g. NFT sales) act as deflationary pressure.


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