> For the complete documentation index, see [llms.txt](https://mvpaper.magavpcoin.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mvpaper.magavpcoin.com/tokenomics/token-tax-allocation.md).

# Token Tax Allocation

* **Buy/Sell Tax**: A fixed 2% tax is imposed on each buy or sell transaction of MAGA VP (MVP) tokens.
* **TRUMP Token Rewards**: 1% of the buy/sell tax is allocated towards TRUMP token rewards for MVP holders, incentivizing long-term hodling and active participation within the ecosystem.
* **Marketing**: 0.5% of the buy/sell tax is designated for marketing efforts, facilitating the promotion and expansion of MAGA VP's reach and visibility.
* **Add to MVP LP and Burn**: 0.25% of the buy/sell tax is added to the MVP liquidity pool (LP) to enhance liquidity and stability within the ecosystem. Additionally, the same percentage is utilized to burn MVP tokens, reducing the total token supply over time and potentially increasing the value of existing tokens.
* **Add to TRUMP LP and Burn**: Similarly, 0.25% of the buy/sell tax is allocated to the MAGA TRUMP LP to bolster liquidity for MAGA TRUMP transactions. Additionally, an equivalent percentage is used to burn TRUMP tokens, contributing to scarcity and potentially increasing token value.
* **Transfer Tax**: There is no transfer tax imposed on MVP tokens, allowing for seamless transfers between wallets without incurring additional fees.

<figure><img src="/files/6OBtHVoWk1tX5faItCdw" alt=""><figcaption></figcaption></figure>


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