# Passive Burn

The passive burns are automated burns within the contract that get activated when any buy or sell transaction occur on the chain paired with FBURN token.

The burn sends the tokens out of circulating supply and straight to burn address "[*0x000000000000000000000000000000000000dead*](https://bscscan.com/address/0x000000000000000000000000000000000000dead)" <br>

The burn address is a non accessible address of which any tokens that get sent there are forever lost. 4% of the taxes on each transaction are sent to the burn wallet&#x20;

**Passive Burn in Example:**

* If an investor purchases 1,000 tokens at $1.00 each token then 40 tokens are automatically burned
* Then when the investor decides to sell his tokens another 40 tokens are automatically burned

*But what does this mean for the price and chart?*

If these 2 were the only transactions that occurred, then the floor price is now automatically raised to $1.08 for the next investor


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