# Burn Subsidy ## # What is Burn Subsidy? The ***Burn Subsidy*** is a key feature of TAN’s tokenomics, where ***50% of the block reward*** is allocated to the ***Subsidy Layer**.* This layer incentivizes users to burn their TAN tokens, reducing the circulating supply and increasing scarcity. Users who burn tokens receive a ***20% reward*** over a ***one month cliff*** and ***12-month vesting period on his Initial amount*** , encouraging long-term participation. This mechanism fosters a deflationary environment, supporting the value of the token while promoting network stability. Ultimately, the Subsidy Layer ensures balanced token distribution, strengthens the network economy, and drives the overall growth of the ecosystem. * **Allocation and Tokenomics:**\ \&#xNAN;***50%*** of each block reward is allocated to the ***Subsidy Layer***, ensuring it has enough resources to maintain the integrity and sustainability of the network’s tokenomics, supporting long-term health. * **Incentivizing Token Burning and Scarcity:**\ The Subsidy Layer encourages users to burn their TAN tokens, reducing the circulating supply and increasing scarcity, which in turn supports the token’s value over time. * **Incentive for Burning Tokens and Long-Term Participation:**\ Users who burn tokens receive a ***20%*** reward over a ***one month cliff*** and ***12-month vesting period on his Initial amount***** ,** promoting long-term participation and gradual involvement in the ecosystem. * **Strengthening Network Economy and Token Utility:**\ By encouraging token burning and rewarding participants, the Subsidy Layer fosters a deflationary environment, boosts token demand, and strengthens the overall network economy, ensuring healthy ecosystem growth. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.tan.live/getting-started/core-concepts/tan-consensus-bpos/burn-subsidy.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.