> For the complete documentation index, see [llms.txt](https://gmd-protocol.gitbook.io/gnd-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gmd-protocol.gitbook.io/gnd-protocol/xgnd-token/burning-gnd-with-xgnd.md).

# Burning GND with xGND

### The use of xGND can incentivise burning of GND in the following ways:

## 1. xGND Redemptions

When converting xGND to GND, if the vesting duration isn't the maximum, the xGND:GND ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the GND excess will automatically be burned.

For instance, if a user redeems 1000 xGND with the 20 days vesting duration, he will obtain a 1:0.5 ratio, and receive 500 GND in the end.

\=> That means a total of 1000 - 500 = 500 GND will be burned during the process.

## 2. xGND Deallocations

When XGND is staked, a deposit tax is applied. It can vary between contracts, but will usually be 2%.

\=> The corresponding GND amount will automatically be burned.