# Debasing

Every BRR token that is not staked, even those in the LP, are subject to a Debasing mechanism that sets Bera Reserve apart from every other OlympusDAO fork.\
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This feature, burns over time the unstaked BRR supply, **offsetting the inflation** caused by Staking Rebases **and the dilution** caused by Bonds.<br>

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Since this core mechanic is applied also on BRR tokens in the LP, the price of BRR tokens will **go up at the debase percentage** due to the balanced nature of [V2 Liquidity pools](https://docs.uniswap.org/contracts/v2/concepts/core-concepts/pools).\
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In fact, V2 liquidity pools need to always be 50/50-balanced in dollar terms.\
Therefore, if you have 100 BRR paired with 100 HONEY (a stablecoin pegged to the value of 1$) it means the price of BRR is exactly 1$.\
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Let's assume there is no trading for a while and the debasing mechanism burnt 10 BRR from the LP.\
Now we have 90 BRR paired with 100 HONEY, meaning the price of BRR is 1.11$