# ERC20 Burn on transfer (deflationary token)

**URL:** <https://forum.openzeppelin.com/t/erc20-burn-on-transfer-deflationary-token/4458>\
**Category:** Contracts\
**Tags:** erc20\
**Created:** [November 7, 2020, 7:09pm UTC](https://forum.openzeppelin.com/t/erc20-burn-on-transfer-deflationary-token/4458 "2020-11-07T19:09:20Z")\
**Posts on this page:** 1\
**Showing post:** 3

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**Author:** ![abcoathup](https://sea2.discourse-cdn.com/flex022/user_avatar/forum.openzeppelin.com/abcoathup/32/415_2.png) [@abcoathup](https://forum.openzeppelin.com/u/abcoathup)\
**Post date:** [November 9, 2020, 6:59am UTC](https://forum.openzeppelin.com/t/erc20-burn-on-transfer-deflationary-token/4458/3 "2020-11-09T06:59:37Z")

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Hi @RC5858,

Welcome to the community. 👋

I recommend looking at the following too:

> [@Add commission to ERC20 transfer](https://forum.openzeppelin.com/t/add-commission-to-erc20-transfer/4456/2):
>
> Yeah, of course, you can. And at the same time, it will bring some issues, warning If you create a fee on transfer or deflationary token (burn a percentage on transfer) this can cause issues with use in other contracts such as: [https://medium.com/balancer-protocol/incident-with-non-standard-erc20-deflationary-tokens-95a0f6d46dea](https://medium.com/balancer-protocol/incident-with-non-standard-erc20-deflationary-tokens-95a0f6d46dea) Any solution should be appropriately tested (including testing with services that you want to use) and appropriately audited. I also suggest looking at [Points …](https://forum.openzeppelin.com/t/points-to-consider-when-creating-a-fungible-token-erc20-erc777/2915)

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