> For the complete documentation index, see [llms.txt](https://node-squared.gitbook.io/node-squared-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://node-squared.gitbook.io/node-squared-docs/node-squared-revenue-model/usdn2-buy-backs-and-burns.md).

# $N2 Buy Backs and Burns

We believe as close to 100% of revenues should be used to provide value to $N2 holders while maintaining complete security and safety for all users. 

That's why we explored in-depth multiple options to accrue value back to token holders, including staking, airdrops and buy back and burns.

![](https://2570854279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAXQsTen2s9Q5Ja2GK4Rq%2Fuploads%2FBwMi3pe1amJ9E2XBdpiG%2Fimage.png?alt=media\&token=5c9e3aa2-4d97-417b-9d8c-0133bbb16e76)

After long internal discussions and consulting several advisors, we decided that weekly buy back and burns would be best for the project long term, for the following reasons:

* Staking, which was our initial plan, poses security risks (ie. router clogs), as well as a large percentage of profits eaten by gas fees
* Airdrops are also unfeasible due to high gas costs. Each distribution would require 2-3 ETH in gas, which would be better suited for marketing or purchasing additional nodes
* Buy backs and burn is battle-tested model that creates constant buy pressure on the token while removing more tokens from the supply to support price appreciation 
* In addition, the burn wallet will continue to accrue 2% passive reflect fees which creates a hyper-deflationary "blackhole" that circulating supply even faster

![](https://2570854279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAXQsTen2s9Q5Ja2GK4Rq%2Fuploads%2FlDdbj0xTGH7Go9eYwlON%2Fimage.png?alt=media\&token=5a1c3d56-03f5-486f-a126-365bc72c1106)

Buy backs will be done once a week and announced in our community channels and[ buy back history page](/node-squared-docs/node-squared-revenue-model/buy-back-and-burn-history.md)