> For the complete documentation index, see [llms.txt](https://docs.takadao.io/takadao-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.takadao.io/takadao-docs/taka-tokenomics-litepaper-v1/taka-tokenomics-in-brief/token-value-accrual-buy-back-and-burn-bbb.md).

# Token Value Accrual: Buy Back & Burn (BBB)

Value accrual is implicit in good token design. Correct value accrual mechanisms boost the underlying ecosystem generally and incentivise token holders to keep the token for the long term. With the TAKA token, there are two mechanisms for value accrual that are enabled by Takadao revenue from Protocol and Service Agreement fees. The rePool is the first as described above and Buy Back & Burn (BBB) is the second.

| [Takadao revenue](#user-content-fn-1)[^1] is allocated to: | % Allocation | Value accrues to                             |
| ---------------------------------------------------------- | ------------ | -------------------------------------------- |
| Buyback & Burn                                             | 25%          | Token holders                                |
| rePool Staker yield                                        | 10%          | Token holders that are rePool stakers        |
| Reserve Treasury (yield generating)                        | 10%          | Takadao treasury controlled by token holders |
| Takadao (for operational costs)                            | 55%          | Takadao team & investors                     |

25% of Takadao’s revenue is allocated to buying back the circulating supply of TAKA tokens. These repurchased TAKA tokens will be burned which in turn reduces the circulating supply and creates upward price pressure.  

[^1]: Protocol fee + Services Agreement fee