# Libra Finance Token

**Tokenomics**

Libra Finance introduces a novel approach to tokenomics, combining deflationary mechanisms with a taxed token structure. This unique design is aimed at fostering a sustainable and thriving ecosystem. Key aspects of Libra Finance's tokenomics include:

* **Deflationary Mechanism:** Libra Finance is designed to combat inflationary pressures by incorporating a deflationary mechanism. This feature ensures that the total supply of Libra Finance tokens decreases over time, creating scarcity and potentially increasing the value of each token.

<figure><img src="/files/5IxTzfyQYNQbOfIiMlyH" alt="" width="375"><figcaption></figcaption></figure>

* **Taxed Token Structure:** Transactions involving Libra Finance tokens incur a tax. This mechanism encourages long-term holding, rewarding those who actively participate in the Libra Finance ecosystem.

Libra Finance maintains a commitment to transparency and auditability. Consequently, the minting functionality is not absent. This decision aligns with stringent audit standards, ensuring that the token's supply remains fixed and verifiable. By eliminating the possibility of minting new tokens, Libra Finance establishes a clear and trustless environment for its users.


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