> For the complete documentation index, see [llms.txt](https://docs.aethir.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aethir.com/aethir-tokenomics/ath-burn-mechanism.md).
# ATH Burn Mechanism
How daily ATH burns work: burn source, the floating network fee, Cloud Host protections, and how to verify every burn.
## Overview
Aethir burns ATH every day. Each burn is funded by network fees and is sent to a public burn address, where the tokens are permanently removed from circulating supply.
The size of each burn follows real network activity. A published formula sets each day's burn amount from its inputs, so anyone can check a burn against the formula.
Alongside the burn, a floating network fee replaces the fixed platform fee. The floating fee responds to market conditions, read through a time-weighted average price (TWAP), and is capped so it can never exceed the value of Cloud Host rewards.
### Key Parameters
| Parameter | Value |
| ----------------------------- | --------------------------------------------------------------- |
| Burn frequency | Daily, on a published schedule |
| Burn source | Network fees |
| Burn destination | Public burn address: 0x000000000000000000000000000000000000dEaD |
| Burn amount | Set by the published formula and its inputs |
| Network fee type | Floating (replaces the fixed platform fee) |
| Price input | TWAP (time-weighted average price) |
| Network fee ceiling | Can never exceed the value of Cloud Host rewards |
| Network fee floor | None (the fee can fall to zero in weak market conditions) |
| Cloud Host emissions schedule | Unchanged |
| ATH contract supply | Fixed at 42,000,000,000 ATH (unchanged) |
| Go-live | November 2026 (burn model, first burn, and burn dashboard) |
| Audit | Audited by CertiK |
## Burn Source
One source feeds the daily ATH burn and goes to the public burn address.
**Network fees:** Fees the network charges when customers book compute.
## Burn Schedule and Amount
* Burns run **once a day**, on a published schedule.
* The burn amount for each day is **set by the published formula and its inputs**.
* Because the burn is funded by what the network earns, burn size tracks network activity.
## Floating Network Fee
The floating network fee replaces the fixed platform fee.
Burn amounts are determined by the published formula and its inputs - last month’s revenue based on the prior 730 hours, and ATH price via 30-day TWAP.
| Market condition | Network fee | Share of the fee that's burned |
| ---------------- | ----------- | ------------------------------ |
| Weakening | Falls | Rises |
{% hint style="warning" %}
The fee has **no minimum**. In weak markets it can fall to zero.
{% endhint %}
A fixed fee doesn't respond to the market. The floating fee follows the same approach as demand-led capacity planning: it adjusts to the conditions the network is actually operating in.
## Cloud Host Protection
Cloud Hosts supply the GPUs the Aethir network runs on. The floating network fee includes these protections for them:
* **Fee ceiling:** The network fee can never exceed the value of Cloud Host rewards. This ceiling is written into the published formula.
* **Emissions schedule unchanged:** The host emissions schedule doesn't change. The update changes the fee applied to those rewards, and part of that fee is burned.
* **Earning model unchanged:** Nothing changes in how Cloud Hosts earn ATH. Hosts who run more capacity, or run it better, keep what that earns.
## ATH Supply
ATH contract supply is fixed at **42 billion ATH**, as set out in our published tokenomics. This hasn't changed and the burn mechanism doesn't change it.
Burned tokens are sent to a verifiable public burn address, 0x000000000000000000000000000000000000dEaD, and reflected in circulating supply on major trackers.
Every burn reduces net new ATH supply.
## Verification and Transparency
Every part of the burn mechanism can be checked on our public burn dashboard:
### Burn Dashboard
The burn dashboard shows:
* Daily ATH burned
* Monthly ATH burned
* Cumulative ATH burned
* The full burn transaction history
Track every burn: \[Burn dashboard live in November 2026]
From the first burn, anyone can compare each burn against the formula and its inputs.
## FAQ
What is the ATH tokenomics update?
The update changes how ATH supply works. Every day, Aethir burns ATH funded by network fees and sends it to a public burn address. A floating network fee also replaces the fixed platform fee. The burn model goes live in November 2026.
How does the ATH burn work?
Network fees fund a daily burn. The published formula and its inputs set each day's amount, so the burn follows real network activity. Every burn goes to the public burn address, 0x000000000000000000000000000000000000dEaD.
What does the update mean for ATH holders?
ATH holders get a supply that responds to network usage, plus a way to check it. Burns reduce net new ATH supply, and the burn dashboard, live from November 2026, publishes the full burn history from launch.
Will ATH emissions change for Cloud Hosts?
No. The host emissions schedule doesn't change. The update changes the fee applied to those rewards, and part of that fee is burned. The fee is capped: it can never exceed the value of Cloud Host rewards.
Can the network fee go to zero?
Yes. The floating network fee has no minimum, so in weak markets it can fall to zero.
Does the burn change ATH's total supply?
No. ATH contract supply stays fixed at 42 billion. Burned tokens are permanently removed from circulating supply and are visible on the public burn address and the burn dashboard.