# Token Burning

{% hint style="info" %}
**What is Token Burning?**\
The process involves transfer of Token into a burn wallet address (also known as burner wallet) with no private key. Effectively Burning removes tokens from the available supply, which decreases the number in circulation. This helps increase scarcity and increases the value of each remaining coin.
{% endhint %}

<figure><img src="/files/3GjqJaMPcWbNF62fBYLD" alt=""><figcaption><p>ORCA Burning Mechanism</p></figcaption></figure>

A specific number of tokens will be burned to maximize price performance according to the list:

* 10% of the price will be burned for every NFT minted using ORCA Token
* 10% of the price will be burned for every NFT upgrade using ORCA Token
* 50% of the Royalties will be used to buy and burn ORCA token for every NFT sale. The buy will be done from the same Vault Tier as the NFT type. The token price for buying will be 0.001 EGLD. Example for an Apex NFT sale: Suppose an NFT is sold for 100 EGLD. In this case, 1.5 EGLD will be used to buy ORCA tokens (1,500) from Apex Vault and burn them.
* 100% of ORCA Token not used for airdrop during the [Assets Exchange](/orcas.gg-guilds-and-games/orcas.gg/operating-model/assets-exchange.md) process will be burned.&#x20;

{% hint style="info" %}
**What are NFT Royalties?**\
NFT royalties compensate the original creator every time a secondary sale of their digital asset occurs. The royalty percentage is set by the creator at the time of minting. In our case, this percentage (3%) is taken from the sale price and distributed as follow: 50% will be used to buy and burn ORCA token, and 50% will go to the project team.
{% endhint %}

<figure><img src="/files/R2ePATYv2jqlVT6kxsEz" alt=""><figcaption></figcaption></figure>


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