# Trading Taxes The Token tax for Buying & Selling onchain is 5% 1️⃣ 2% Reward 2️⃣ 1% Trading 3️⃣ 1% Liquidity 4️⃣ 1% Burn. **Why did we decide this?** **REWARD:** The reward tax is a slow-dripped reward to stakers in $TRIBOT, providing a steady flow of liquidity to promote the reduced circulation of $TRIBOT over time. #LIQUIDITYSTAKING **TRADING:** The trading tax is used over time to convert into USDT, and enable us to generate profits through our bots as trading volume, and return that into the ecosystem through staked rewards, trading profits and also buy-backs to improve overall liquidity and ecosystem health. **BURN:** As you know, our staking also distributes $TRIBOT as part of the reward system. While it is a drip system, our goal over time is to continuously facilitate increased value creation, so a counter-measure to any 'inflationary' concerns was required. Therefore we Instituted a 1% burn on all DEX transactions thus reducing the overall supply as volume grows. **LIQUIDITY:** For long-term growth and longevity, we identified a need (also from other projects having similar considerations) that a liquidity tax is imperative, before we start, to counter-act inflation with deflation, in order to balance the overall growth over time. This also continues to build our liquidity foundation, establishing a stronger and more stable price point. --- # 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://trifecta.gitbook.io/welcome/rewards-and-taxes/trading-taxes.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.