# Deflationary Mechanic

#### Deflationary Contribution via pValhalla/pOHM <a href="#deflationary-contribution-via-pvalhalla-pohm" id="deflationary-contribution-via-pvalhalla-pohm"></a>

An integral part of ODIN’s deflationary mechanics is the interaction with **pValhalla/pOHM**. This mechanism incorporates both a **1% wrap/unwrap fee** and a **0.77% trading fee** applied during the conversion between ODIN and pValhalla. Additionally, **33,333,333 pValhalla** tokens are **permanently locked**, earning ODIN through this system. Here’s how it works:

**Combined Fee Structure**

Whenever ODIN is either **wrapped into** or **unwrapped from** pValhalla, or **traded** within the liquidity pools, fees are applied to support ODIN’s deflationary model and reward stakeholders. The fee structure is as follows:

* **Total Fees**:
  * **1% Wrap/Unwrap Fee**
  * **0.77% Trading Fee**
* **Fee Distribution**:
  * **50% Burn pValhalla**: Half of the collected fees are used to burn pValhalla tokens, thereby reducing the total supply and contributing to ODIN’s deflationary model.
  * **45% Reward LP Providers**: Nearly half of the fees are distributed to liquidity providers of pOHm/pValhalla, incentivizing continued participation and liquidity provision.
  * **5% PEAS Treasury**: A small portion of the fees is allocated to the PEAS treasury, supporting ongoing development and community initiatives.

**Permanently Locked pValhalla**

* **33,333,333 pValhalla**: These tokens are **permanently locked**, ensuring a continuous earning stream of ODIN through the wrap/unwrap and trading fee mechanisms. This locked position is a key driver for ODIN’s deflationary model, as it consistently reduces the supply of ODIN while rewarding pValhalla holders.

**Built with Peapods Finance**

Visit <https://peapods.finance/> for more information including audits on the contracts used to deploy the pValhalla deflationary mechanic.


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