> For the complete documentation index, see [llms.txt](https://docs.canary.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.canary.exchange/tokenomics/cnr-distribution.md).

# CNR Distribution

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### **The Evolution of CNR Token**

CNR Token, the native utility token of the Canary ecosystem, has undergone a transformative upgrade. At the heart of this upgrade lies the introduction of an automatic burning mechanism, a groundbreaking feature that dynamically adjusts the CNR Total Supply.

### **Auto-Burn Contract**

The auto-burn contract is a sophisticated smart contract designed to automatically reduce the CNR Total Supply at regular intervals. This mechanism ensures a gradual decrease in the total supply of CNR Tokens, contributing to increased scarcity over time. As a result, this innovative approach seeks to address concerns related to tokenomics, fostering a deflationary model that benefits long-term holders.

### **The Impact on CNR Tokenomics**

This shift in CNR Tokenomics brings several noteworthy implications. By reducing the Total Supply, the auto-burn mechanism aims to create a scarcity effect, potentially influencing the token's value positively. Moreover, as the circulating supply decreases, the deflationary nature may contribute to greater stability and sustainability.