> For the complete documentation index, see [llms.txt](https://xnet-mobile.gitbook.io/xnet-mobile-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xnet-mobile.gitbook.io/xnet-mobile-docs/xnet-foundation/foundation/xnet-token/governance/xnet-improvement-proposals/xip-2.md).

# XIP-2

## Background

XNET distributes earned revenues to the community using the XNET token Buy and Burn mechanism. This means that a percentage of the revenue received by XNET is used to Buy XNET tokens from the community (using various marketplaces) and then ‘Burning’ them, i.e. sending them irrevocably to a Burn wallet.

The current Paid Data rate for Cellular data is 40% as there are high costs associated with running the central Telco Core for Cellular traffic. However, it has become clear that 40% is too low and this can be moved to 50%

## Proposal

The current Buy and Burn rate for Paid Data on Cellular radios is 40%. This means that 40% of the revenue received by XNET from MNOs and MVNOs is used to buy and irrevocably burn $XNET tokens. This rate is proposed to be changed to 50%. This means that 50% of the revenue received by XNET from MNOs and MVNOs will be used to buy and irrevocably burn $XNET tokens.

This change does not affect the Buy and Burn Rate for WiFi Paid Data which is still currently at 80%, i.e. 80% of the WiFi-related revenue received by XNET is used to Buy tokens and Burn them.