> For the complete documentation index, see [llms.txt](https://docs.fairlaunch.gg/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fairlaunch.gg/the-pump-engine.md).

# The Pump Engine

The **Pump Engine** is Fairlaunch.gg’s self-reinforcing value driver. Every time a project launches or trades on our platform, the engine activates — automatically buying and burning $FLX, making it scarcer with every cycle.

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#### **How It Works**

1. **Fee Collection**
   * Fees are generated from **token launches** and **trading volume**.
2. **Automatic Buybacks**
   * Smart contracts **instantly use 50% of all fees to buy $FLX** on the open market.
3. **Permanent Burns**
   * The purchased $FLX is **permanently destroyed**, reducing total supply forever.
4. **Deflationary Pressure**
   * As supply decreases, demand for $FLX continues to climb.
5. **Compounding Growth**
   * More launches and trading → more fees → more burns → stronger $FLX → attracts more projects → even more trading volume.

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#### **Why It Matters**

* **Always On** – The Pump Engine runs automatically with every transaction.
* **Deflationary by Design** – The more the platform is used, the rarer $FLX becomes.
* **Aligned Incentives** – Every project launch and every trade benefits token holders.
* **Scalable Growth** – As platform volume increases, the Pump Engine accelerates.

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⚡ The visual for this page should be a **circular loop engine diagram** with two entry points for **Launch Fees** and **Trading Fees**, flowing into **Buybacks → Burns → Scarcity → Higher Value → More Projects/Trading → back into Fees.**