# 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:

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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.
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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.