Good question. I haven't mentioned memory management because it's not done yet. I know for sure there won't be a GC or reference counting.
I want to do something similar to Rust's approach, but much much simpler. It's not an easy task.
Right now the language handles very simple cases. Small strings are placed on the stack, local variables that are not returned are clean up automatically.
Globals are not allowed, function args can't be modified, so that helps a bit.