# Burn rate Make sure you understand how the [Token ratio](/the-protocol/watt-assets/token-ratio.md) works before exploring the Burn rate. **Burn rate indicates how incurred fees are split between burning liquid-staked Watt tokens and rewarding liquidity providers in the Watt token pool.** For example, if the Burn rate is set at 40% for a certain token, this means 40% of eligible fees are dedicated to burning Watt tokens, while the remaining 60% of eligible fees are distributed among liquidity providers in a Raydium pool. Increasing the Burn rate favours Watt token holders, whereas decreasing the Burn rate favours liquidity providers. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.watt.si/the-protocol/fee-structure/burn-rate.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.