The Fee Burner module is a core component of Neutron’s tokenomics design. It manages transaction fees by implementing a deflationary mechanism that burns NTRN tokens and redistributes other token denominations to the Treasury.
Governance-Controlled Parameters: The Fee Burner module’s parameters (such as treasury address) can only be updated through governance proposals. Individual users cannot directly modify module settings.

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Key Features

  • NTRN Token Burning: Automatically burns all fees collected in NTRN tokens, creating deflationary pressure on the token supply
  • Treasury Redistribution: Directs non-NTRN fee tokens to the Treasury address for ecosystem funding
  • Automatic Execution: Runs at the end of each block to process accumulated fees
  • Accounting: Tracks the total amount of NTRN tokens burned over time

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Module Functionality

The Fee Burner module operates through the following workflow:
  1. Fee Processing: At the end of each block, the Fee Burner module processes all fees in its designated module account:
    • 100% of NTRN tokens are burned, permanently removing them from circulation
    • Non-NTRN tokens are sent to the Treasury address for further ecosystem management
  2. Record Keeping: The module maintains a state record of the total amount of NTRN tokens burned since genesis
This mechanism ensures a sustainable tokenomics model by creating continuous deflationary pressure on the NTRN token while providing funding for ecosystem development through the Treasury.