# 5.2 Buy-Back Protocol

## **Buy-Back Protocol**

Our innovative buy-back protocol is designed to continuously reduce the circulating supply of tokens, potentially increasing the value of the remaining tokens over time:

* **Automated Smart Contract:** A portion of the trading fees is allocated to buy back Diamond Bull tokens from the market. This process is fully automated via a smart contract, ensuring transparency, consistency, and eliminating the need to trust any individual. The smart contract's automated nature guarantees that the buy-back process is impartial and reliable.
* **Supply Reduction:** The bought-back tokens are locked, effectively reducing the circulating supply. This constant reduction mechanism helps in maintaining a balanced demand-supply ratio, positively impacting token value.