> For the complete documentation index, see [llms.txt](https://aishiba.gitbook.io/aishiba-1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aishiba.gitbook.io/aishiba-1/products/usdshicod/shicod-tokenomics/shicod-indef-economy/deflation-phase-details-rewards-and-allocation.md).

# Deflation Phase Details, Rewards, and Allocation

The SHICOD deflation model aims to restrict continual dilution of circulating supply. Based on the benchmark fee model, it attaches a 5% base fee to all SHICOD trades, distributed as follows:

{% hint style="info" %}
3% is converted to ARB and rewarded to SHICOD stakers and traders.

1% is designated for SHICOD buybacks and burn.

1% adds to the SHICOD/WETH liquidity pool.
{% endhint %}

The deflationary distribution will take this form:

> 2% in ARB rewarded to SHICOD stakers.
>
> 1% in ARB rewarded to top and active SHICOD traders.
>
> 1% used for SHICOD buybacks and burn.
>
> 1% added to SHICOD/WETH liquidity.