# Token ratio Understanding the Token ratio is straightforward yet crucial. Watt Protocol employs the **Token ratio to determine how many liquid-staked Watt tokens you receive when wrapping, and how many original tokens you reclaim upon unwrapping.** The Token ratio is calculated by dividing the amount of original tokens stored securely in the vault (tokens are deposited into the vault upon wrapping) by the total supply of minted Watt tokens. With each protocol transaction, a portion of the collected fees is dedicated to burning Watt tokens. Burning reduces the total token supply, which in turn increases the Token ratio. Consequently, unwrapping tokens at a higher Token ratio yields a greater amount of original tokens, effectively distributing accrued yield to liquid-staked Watt token holders. Thus, each protocol transaction contributes positively to the yield of liquid-staked Watt tokens. The exact APR is always displayed within the application interface. The [Burn rate](/the-protocol/fee-structure/burn-rate.md) parameter controls the proportion of fees specifically allocated for burning liquid-staked Watt tokens. --- # 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/watt-assets/token-ratio.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.