# Treasury Burn

 **VaultCraftDAO will burn treasury VCX 1:1 each time oVCX is redeemed for VCX**

* Approximately 100M oVCX will be distributed through gauge rewards
* Emissions of 2M oVCX per epoch for 13 epochs, followed by a decay rate of \~2.71%
* \~10%+ deflationary effect over the first 4 years assuming 100% oVCX redemption

**oVCX emissions**

For the first 13 epochs, 2,000,000 oVCX will be emitted through gauges. After this period, the amount of oVCX emitted per epoch will decrease by \~2.71% relative to the previous period.

$$
lastRate \* 1.0271e18 / 1e18
$$

E.g., 2M… 2.M, 1.947M, 1.895M, 1.845M…

oVCX emissions will continue into perpetuity, depleting nearly the entire 100M budget within the first 10 years. VaultCraftDAO governance can vote to modify this system in the future.

<figure><img src="/files/TJPyNK7ozv6BhfaHLhgj" alt=""><figcaption><p>Illustrative</p></figcaption></figure>

<figure><img src="/files/SF5YEiNEDgPQqGBmeBhZ" alt=""><figcaption><p>Illustrative, actual figures depend on oVCX redemptions and VCX market price</p></figcaption></figure>


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