> For the complete documentation index, see [llms.txt](https://wiki.elephant.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.elephant.money/services/trumpet/token-mechanics-mint-and-redeem/trunk-buyback-strategy.md).

# TRUNK Buyback Strategy

One of the key differences between the $TRUMPET token and other similar tokens is the additional volume that will be generated through the [TRUNK Buyback Strategy.](/ecosystem-tokens/trunk-token-elephant-money-stable/deflationary-mechanics.md) Not only does the TRUNK Buybacj Strategy contribute to the volume going through the $TRUMPET contract, but, because any $TRUMPET minted via TRUNK Buyback Strategy are immediately burned, while still being added to $TRUNK Backing Supply, it means the price impact is much more significant than normal mint/redeem.\
\
**Example:**\
\
Before:\
Current $Trunk Backing Supply - 4,000,000 Trunk\
Current Circulating Trumpet Supply - 3,000,000 Trumpet\
$Trumpet Price = 1.33\
\
\&#xNAN;*Peg Support Strategy buys 100,000 Trunk which mints 71,428 Trumpet (after tax)*\
\
After:\
$Trunk Backing Supply - 4,100,000 $Trunk\
Circulating Trumpet Supply - 3,000,000 $Trumpet (the $Trumpet minted is immediately burned)\
$Trumpet Price = 1.366\
\
\&#xNAN;*<mark style="color:green;">**Price impact of the transaction = +2.7%**</mark>*\
\
**Now - Let's compare a regular user minting trumpet using the same figures:**\
\
Before:\
Current $Trunk Backing Supply - 4,000,000 Trunk\
Current Circulating $Trumpet Supply - 3,000,000 $Trumpet \
$Trumpet Price = 1.33\
\
\&#xNAN;*User Mints 100,000 Trunk = 71,428 Trumpet (after tax)*\
\
After:\
$Trunk Backing Supply - 4,100,0000 $Trunk\
Circulating $Trumpet Supply - 3,071,428 $Trumpet (the $Trumpet minted is added to circulating supply)\
$Trumpet Price = 1.334\
\
\&#xNAN;*<mark style="color:green;">**Price impact of the transaction = +0.3%**</mark>*


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