> For the complete documentation index, see [llms.txt](https://pepay.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pepay.gitbook.io/whitepaper/overview/burn-usdpepay.md).

# Burn $PEPAY

<figure><img src="/files/J4TzKhkAzx5f5yZptsyO" alt=""><figcaption></figcaption></figure>

When a user burns (sells to contract) $PEPAY, the $PEPAY tokens are burned, and the $PEPE is returned to the user based on the current backing ratio (which can only go up over time.)

Result: $PEPAY Vault increases, the backing price goes up in $PEPE. $1 in $PEPAY is burned but $.90 in $PEPE is returned, so that the backing increases more than the token inflation.