# Tax Mechanism (4% Buy / 4% Sell) To ensure sustainable growth, fund development, and reward long-term holders, the $VEIL token employs a transaction tax on all on-chain decentralized exchange (DEX) trades. This mechanism is designed to be fully transparent and to directly benefit the ecosystem and its participants. *** #### **Tax Structure** A 4**% tax** is applied to every **buy** and **sell** transaction of the $VEIL token conducted on a DEX (such as Uniswap). * **Buy Tax:** 4% * **Sell Tax:** 4% **Important Note:** This tax applies *only* to DEX swaps. It does not apply to wallet-to-wallet transfers or trades conducted on Centralized Exchanges (CEXs) if the token is listed there in the future. *** #### **Allocation of Tax Revenue** The revenue generated from the transaction tax is automatically allocated to support the long-term health and growth of the DarkVeil ecosystem. The allocation is as follows: * **2% - Staking Rewards:** This portion is sent directly to the staking contract to be distributed as yield to users who are staking their $VEIL tokens. This directly rewards long-term holders. * **2% - Treasury & Development:** This portion is sent to the protocol's treasury. These funds are used for ongoing development, marketing, operational costs, and funding future ecosystem initiatives. > This tax structure is a core component of our economic model, creating a self-sustaining system where trading activity directly fuels rewards for stakers and ensures the protocol has the resources to innovate and grow. Next, review the initial allocation of the token supply in **Distribution & Vesting**. --- # 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://docs.darkveil.io/usdveil-tokenomics/tax-mechanism-4-buy-4-sell.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.