# LVL Weekly Burn

This LVL Burn mechanism was implemented in [LIP-022: Regulating LVL Balance](https://dao.level.finance/proposals/0x1ee5e7c139d956e9f4a3a2945c6271eab9f3b700829b714eec4a8fcf1e0fe0b1) after the DAO voted in favor. This mechanism regulates the DAO’s LVL balance.

Given that the DAO accrues trading fees on a continuous basis, there will be a weekly 1:1 burning of LVL tokens from the treasury reserve for every 1$ of trading fees it accumulates.

> *We believe that reducing terminal supply of LVL at the same rate that the platform is growing is a great way to simultaneously enhance the value of the protocol as well as reward its community of early adopters committed to the long term success of the protocol.*

<figure><img src="https://133323373-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFJ6zbXbgFXVZp3qunySS%2Fuploads%2F5gzT0bIZm720RmbSRQRz%2FdaoLVLweeklyburn.png?alt=media&#x26;token=09f790c9-b333-4318-ac1c-72b6718a038a" alt=""><figcaption></figcaption></figure>