> For the complete documentation index, see [llms.txt](https://docs.rao.cash/l/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rao.cash/l/utility-token/allocation-and-utility-of-usdrao-transaction-taxes.md).

# Allocation and Utility of $RAO Transaction Taxes

<figure><img src="/files/snjABveOdWozru4YETWc" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/JU5N4pUFK0WNM0S3KiWN" alt=""><figcaption></figcaption></figure>

📊 **Tokenomics & Tax Distribution Structure**

| Category                                | Buy Tax | Sell Tax |
| --------------------------------------- | ------- | -------- |
| **Holder Rewards (Reflections)**        | **4%**  | **4%**   |
| **Liquidity Provision (Auto-LP)**       | **2%**  | **2%**   |
| **Ecosystem Treasury**                  | **1%**  | **1%**   |
| **Deflationary Burn (Auto Hyper-Burn)** | **1%**  | **1%**   |

***

✅ **Core Economic Pillars**

* **Automated Wealth Generation:** A <mark style="color:green;">**4%**</mark> reflection is triggered by every transaction. By simply holding **$RAO** in your decentralized wallet, you accumulate more assets in real-time, significantly boosting your long-term ROI.
* **Market Resilience:** <mark style="color:green;">**2%**</mark> of every buy and sell order is funneled into the **RAO/BNB** liquidity pool on PancakeSwap. This mechanism bolsters the token’s price floor and ensures seamless global trading.
* **Strategic Treasury & Insurance:** <mark style="color:green;">**1%**</mark> of transaction volume fuels the marketing engine and funds ecosystem expansion.
  * **0.5%** of these reserves are allocated to physical gold and diamond acquisitions secured within **RaoBank**.
  * Additional funds are deployed into high-yield real estate and resort developments.
* **Hyper-Deflationary Mechanism:** 1% of all network activity is permanently incinerated via the **Auto Hyper-Burn** protocol. This constant supply reduction induces scarcity and drives the long-term valuation of the $RAO token.

***

<br>


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