# $JUR Deflationary Token Model

The $JUR token model is deflationary. The initial $JUR token supply is set at 1B and, as part of the transaction fee to use the Jur Chain, 20% is burned (see [Transaction Fee Distribution](https://app.gitbook.com/o/0gcIfR6h7zg1xTLArrpK/s/jMNQSqk1n74rnFDPrhBu/~/changes/MDCk1IuX4EPqXimx9US0/jur-economy/transaction-fee-distribution)), effectively taking those tokens out of the circulating supply. 

<figure><img src="https://lh3.googleusercontent.com/y5qBvb0EQiUIK5tA-snK72JD2QNUvkBWs1rpG1vcnoOe9jXeaFnFcJms5EI2LxtyzjmLRCijNEKnd4aAZWSMDSM7GLj6DO3Bm2_zGmKcbw4D4Fc2asLkZOqimgFydGh78qupTGPrKidZdX9MngpLuc2ueY4YtRVEH5xqLqbE53C1xIEVAWLaJTS1xTGb4Q" alt=""><figcaption></figcaption></figure>

Jur Chain inherits security functions from the Polkadot Relay Chain. A minimum of three collators are managed by ecosystem partners to ensure block production. Collators are paid for their infrastructure work with 20% of the transaction fees (Collator Fee). Over time, a permissionless system of collators may be enabled. &#x20;

Regarding collator rewards, currently we do not envision an inflationary system to incentivize participation in this network role. After collecting community feedback, Jur decided to pioneer a different approach where collators’ incentive comes from the transaction fees and the deflationary aspects of the token model. This decision may be revised at a later stage.

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Contrary to what one might think at first glance, having more Collators does not increase the security of the network. Too many collators could slow down the network. The advantage of having more collators is to be censorship resistant so that collators do not conspire to censor specific transactions on the Jur Chain. For the initial stages, collators belonging to our partners have skin in the game and a strong incentive to act appropriately.


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