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

# Deflationary Tokenomics

Kernel Protocol operates on a deflationary tokenomics model.

Revenues from Protocol Fees are used to fund buy-back-and burns that help support KERN price and counteract the impact of Seasonal Airdrops. 

Given the deflationary nature of the token and other variables, the tokenomics are dynamic, however the following provides a snapshot as of 30th April:

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXfxlC5rRMmG_zDcvHqRT3q4phpXaHZnlgCim5IZ_8XC7YvLqQeY5EoNYBwRV2jKO5KB_d5Skja_dKiurgy4MDSZb6A18mC-tm7lzJ7QjJy_GD5bLp1q84NtRGoWRKEZKYguwfCvUUf5gcMkHucz1ppaWBf4?key=vGAJoXADCFCQBiazXpNBKw)

KERN tokens for Seasonal Airdrops are taken from holdings in the Treasury.

<br>