> For the complete documentation index, see [llms.txt](https://megaeth.gitbook.io/white-paper-v1.0/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://megaeth.gitbook.io/white-paper-v1.0/4.-tax-mechanism.md).

# 4. Tax Mechanism:

To ensure the sustainability and long-term viability of the project, a 10% tax will be levied on each transaction within the MegaETH ecosystem. The tax will be allocated as follows:

* **3% Liquidity Pool Provision:** This portion will be used to add liquidity to the trading pairs on decentralized exchanges, ensuring stability and facilitating smooth transactions.
* **2% Reward to Token Holders:** As mentioned earlier, 2% of the tax will be distributed as ETH rewards to all MegaETH token holders, incentivizing long-term holding.
* **5% Marketing and Community:** This segment will be allocated to promote MegaETH across various platforms, attract new users, and strengthen the community through engaging campaigns and initiatives.