> ## Documentation Index
> Fetch the complete documentation index at: https://docs.accumulate.supply/llms.txt
> Use this file to discover all available pages before exploring further.

# How It Works

> A simple, repeatable flow with no discretionary actions

Accumulate operates through a simple, repeatable flow. There are no discretionary actions and no conditional logic based on market conditions.

**The same process executes continuously as long as the protocol is active.**

## The Flow

<img src="https://mintcdn.com/lemonlaunch/2QOconk9czqE3yGM/images/working.png?fit=max&auto=format&n=2QOconk9czqE3yGM&q=85&s=475ac0ec6d8829743d4678ac7cfea702" alt="how-it-works.png" width="1920" height="1080" data-path="images/working.png" />

<Steps>
  <Step title="Trading Activity">
    Accumulate is accessed through onchain trading. All interaction with the protocol happens via market activity.

    <Note>
      There are no manual deposits, strategy toggles, or configuration options for users.
    </Note>

    Every trade involving \$ACCU is treated the same way by the system.
  </Step>

  <Step title="Fee Collection">
    When a trade occurs, protocol fees are collected automatically at the smart
    contract level. These fees are the **sole source of capital** used by
    Accumulate. - Deterministic and transparent - No external revenue streams - No
    reliance on third-party funding - No dynamic fee adjustments The protocol does
    not adjust fees based on volume, volatility, or price.
  </Step>

  <Step title="Fee Routing">
    Collected fees are split according to **fixed rules**:

    <CardGroup cols={2}>
      <Card title="Bitcoin Acquisition" icon="bitcoin">
        One portion is used to acquire Bitcoin
      </Card>

      <Card title="Token Buyback" icon="fire">
        One portion is used to buy back \$ACCU and burn it
      </Card>
    </CardGroup>

    These actions are protocol-defined and do not change over time unless
    explicitly upgraded through governance.
  </Step>

  <Step title="Buyback and Burn">
    When buybacks are executed, \$ACCU is purchased directly from the market and
    sent to an **irrecoverable address**.
    <Warning>Burned tokens cannot be recovered, reused, or reissued.</Warning>
    This process reduces circulating supply over time as long as trading activity
    continues.
  </Step>

  <Step title="Bitcoin Accumulation">
    Bitcoin purchases are executed using the portion of fees allocated for accumulation. Acquired Bitcoin is transferred to the protocol treasury.

    <Note>
      Once Bitcoin enters the treasury, it is **never sold**. There is no logic for liquidation, rebalancing, or conversion into other assets.
    </Note>
  </Step>
</Steps>

***

## Key Principles

<AccordionGroup>
  <Accordion title="No Discretion" icon="lock">
    Every action follows predefined rules. The protocol cannot deviate from its
    programmed behavior.
  </Accordion>

  <Accordion title="No Conditional Logic" icon="code">
    Market conditions do not affect protocol execution. Volatility, price
    movements, and external events are ignored.
  </Accordion>

  <Accordion title="Transparent and Verifiable" icon="eye">
    All transactions occur onchain and can be independently verified by anyone.
  </Accordion>

  <Accordion title="Continuous Execution" icon="rotate">
    As long as trading activity exists, the accumulation and burn mechanisms
    continue operating.
  </Accordion>
</AccordionGroup>

***

## What Happens Next

<CardGroup cols={2}>
  <Card title="Treasury Strategy" icon="vault" href="/protocol/treasury-and-bitcoin-strategy">
    Learn how Bitcoin is stored and secured
  </Card>

  <Card title="Tokenomics" icon="chart-line" href="/protocol/tokenomics">
    Understand \$ACCU supply mechanics
  </Card>

  <Card title="Governance" icon="users" href="/governance/governance-and-control">
    See who controls what and how changes are made
  </Card>

  <Card title="Security Model" icon="shield-halved" href="/governance/security-model">
    Explore the protocol's security approach
  </Card>
</CardGroup>