> For the complete documentation index, see [llms.txt](https://xai-3.gitbook.io/xaitoken/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xai-3.gitbook.io/xaitoken/tokenomics/taxation.md).

# Taxation

<mark style="color:orange;">A 2% tax will be applied to all buy-and-sell transactions involving XAiToken. The collected tax will be distributed as follows</mark>

**Liquidity**: <mark style="color:purple;">1% of the tax will be used to provide additional liquidity, ensuring the stability and sustainability of the XAiToken ecosystem.</mark>\
\
**Rewards**: <mark style="color:purple;">1% of the tax will be redistributed to existing XAiToken holders as a reward for holding and supporting the project. This mechanism will incentivize users to hold their tokens, thereby reducing token price volatility and encouraging long-term investment.</mark>\
\ <mark style="color:orange;">XAiToken aims to create a balanced and sustainable ecosystem that benefits all stakeholders, including investors, users, and the development team. The strategic allocation of tokens and the taxation mechanism will help drive the project's growth and success while promoting a loyal and engaged community.</mark>

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