# Why FIL Burns? FIL burns provide a **protocol-native and verifiable signal of economic activity** on the Filecoin network. When FIL is burned as part of a Filecoin Pay settlement, the event is recorded on-chain, finalized, and irreversible. It cannot be faked, reversed, or replayed, and it reflects economic usage that has actually been realized rather than merely planned or signaled. Because FIL is burned only at settlement, it captures activity that has completed its full lifecycle: obligations have accrued, services have been delivered, and payment has been finalized. This makes FIL burns a reliable indicator of completed economic activity. By tying DataCap allocation to FIL burns, AutoCap relies on a **neutral and objective proxy for value**. Allocation decisions do not depend on intent, metadata, or off-chain interpretation, and do not require subjective evaluation of services or participants. Instead, they are derived directly from observable on-chain outcomes. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://lucas-documentation.gitbook.io/docs/why-fil-burns.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.