> For the complete documentation index, see [llms.txt](https://crezanetwork.gitbook.io/crezanetwork-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://crezanetwork.gitbook.io/crezanetwork-whitepaper/7.-burn-and-redemption-85-15.md).

# 7. Burn & Redemption (85/15)

Redeeming CRZ triggers **100% token destruction** and an **85/15 USDT split**. Tokens never return to treasury—they are permanently burned.

```mermaid
flowchart TB
    R["User redeems CRZ"] --> B["100% CRZ → Dead Address"]
    R --> G["Gross USDT value calculated"]
    G --> P["85% paid to user"]
    G --> K["15% retained in vault"]
    B --> F["Supply ↓ → floor ↑"]
    K --> F
```

## Redemption flow

| Step | Result                              |
| ---- | ----------------------------------- |
| 1    | User initiates redemption           |
| 2    | Contract values CRZ against vault   |
| 3    | 100% CRZ sent to burn address       |
| 4    | 85% USDT transferred to user        |
| 5    | 15% USDT stays in vault permanently |

## Compounding floor effect

Redemptions **shrink supply faster than vault drains**. Remaining CRZ therefore holds **more USDT backing per token** after each burn cycle.

## Lifecycle summary

| Event        | CRZ supply | Vault USDT  | Floor     |
| ------------ | ---------- | ----------- | --------- |
| Deposit      | ↑          | ↑↑          | **Rises** |
| Redeem       | ↓↓ (burn)  | ↓ (85% out) | **Rises** |
| Product burn | ↓          | Same        | **Rises** |

> Both **deposits and redemptions** exert upward pressure on the unit price floor.


---

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