# Supply & Burn Mechanism

## PROTO Supply

PROTO has no transaction swap fees. 10% of the total PROTO emission rewards will be distributed to the team for partnerships, giveaways, marketing, core team rewards and other development activities.

PROTO emissions are affected by [Quantum Supply](https://protofi.gitbook.io/protofi-docs/new-elastic-supply-mechanism/elastic-supply-based-on-marketcap-tvl-ratio).

* ~~**1.8% auto-burn mechanism for every PROTO transaction.**~~** No more applied in Fantom**
* **Via** [**swapper**](https://protofi.gitbook.io/protofi-docs/electron-dividend-system/swapper) => swap ELCT for PROTO before the end of the 72h "*lockup period*" and a linear decaying penalty will be applied to the swap (**up to 30%**).
* Via OTC Market => There is a 5% fee applied on each PROTO - ELCT transaction, and PROTO taken in fees are burned.

## ELCT Supply & Burn Mechanics

ELCT has a built-in linearly decaying penalty that applies to swaps that utilize the [Swapper](https://protofi.gitbook.io/protofi-docs/electron-yield-system/swapper) function; **the max penalty on the swap is 30%**, and will be reduced to 0% over a period of seventy-two (72) hours. 

Moreover, ELCT taken in fees for each trade on the OTC Market are burned.

ELCT emissions are affected by [Quantum Supply](https://protofi.gitbook.io/protofi-docs/new-elastic-supply-mechanism/elastic-supply-based-on-marketcap-tvl-ratio).

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