# The "Treasure Volt"

"The Treasure Volt" is the magic behind Volt tokenomics, that insures a perpetual auction with a deflationary token. 

### The Treasure Volt

* **Source**: After the initial 10-day period, "The Treasure Volt" is the exclusive source for auction tokens.
* **Starting Supply**: "The Treasure Volt" begins with zero tokens.
* **Daily Auction**: 20% of the tokens in "The Treasure Volt" are available for auction each day after Day 10.
* **Token Entry**: Tokens enter "The Treasure Volt" when purchased via Volt's Buy and Burn/Build mechanism.
* **Recycling Mechanism**: 50% of tokens acquired from the liquidity pool through the [Buy and Burn/Feed](https://docs.volt.win/phase-1-volt/buy-and-burn-feed) are sent to "The Treasure Volt."

<figure><img src="https://3210071672-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F2iiVH5pVWlJ54PTwGhGC%2Fuploads%2Frk46oqqxwnlSdA17LXlF%2Fimage.png?alt=media&#x26;token=af322229-d9c8-4e04-a236-2b8f93948330" alt=""><figcaption></figcaption></figure>

### Deflationary Mechanism

* **Buy and Burn Impact**: The daily buy and burn process reduces the number of tokens, decreasing the overall supply available for future auctions.
* **Permanent Supply Decrease**: This process ensures a permanent reduction in the total supply of Volt tokens, making the token deflationary.

### The Vault Game Theory

* **Deflationary Auction System**: "The Treasure Volt" allows the Volt token to be deflationary while sustaining an auction system.
* **Arbitrage Incentives**: The auction system encourages arbitrage between the auction and the liquidity pool, as 80% of the value is directed into the [buy and burn/feed](https://docs.volt.win/phase-1-volt/buy-and-burn-feed) mechanism.

<figure><img src="https://3210071672-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F2iiVH5pVWlJ54PTwGhGC%2Fuploads%2FFDV2MNYMaa6JSPoOTPla%2FDALL%C2%B7E%202024-08-25%2017.29.25%20-%20A%20glowing%20vault%20at%20the%20center%20of%20the%20image%20with%20vibrant%2C%20colorful%20bolts%20of%20lightning%20bursting%20out%20of%20it%2C%20symbolizing%20energy%20and%20power.%20The%20vault%20is%20su.webp?alt=media&#x26;token=6220fc6e-e2b0-415c-bce1-fb74938cb44a" alt="" width="375"><figcaption></figcaption></figure>