> For the complete documentation index, see [llms.txt](https://adera-one.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://adera-one.gitbook.io/whitepaper/5.-stabilization-mechanisms.md).

# 5. Stabilization Mechanisms

ADERA employs advanced stabilization mechanisms to address the issue of volatility within the crypto market:

1. **Burning Mechanism**:
   * Tokens are periodically “burned” (permanently removed from circulation) to reduce supply and increase scarcity.
   * Helps maintain token value and prevent oversupply.
2. **Minting Mechanism**:
   * New tokens are minted in controlled quantities to support liquidity and farming programs.
   * Ensures balance between supply and demand within the ecosystem.
3. **Pegging Mechanism**:
   * PIGEON (PGN) tokens are pegged to external assets, such as stable fiat currencies, to provide price stability.
   * Users can trust PGN as a reliable medium of exchange and liquidity anchor.