> For the complete documentation index, see [llms.txt](https://spredict.gitbook.io/whitepaper-v1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://spredict.gitbook.io/whitepaper-v1/economic-model/swap-tax-revenue.md).

# Swap Tax revenue

For each buy or sell order on decentralized exchanges, a tax of 5% maximum is deducted from the buying or the selling of $SPI tokens. This tax rate is subject to decrease depending on the funding level of the Spredict project. Note that at TGE a higher tax rate will be used to address sniping activity.

<figure><img src="/files/EcAxOjOMNu5GCdmecq81" alt=""><figcaption></figcaption></figure>

The breakdown of the tax revenue is subject to evolve according to the project strategy and development and set as follows:&#x20;

* 2.5% for the Spredict team, to develop the project (operational, development and marketing costs)
* 1% for $SPI staking rewards: $SPI holders who stake their tokens on the Spredict staking contract will be awarded by rewards in $ETH, depending on the volume level on the pair $SPI/$ETH as well as their holdings in $SPI vs the other $SPI stakers
* 1% will increase the liquidity pool of $SPI/$ETH being automatically added to the pair $SPI/$ETH
* 0.5% for the $SPI Liquidity Providers. Anyone can add liquidity in $SPI/$ETH and will get rewarded on a monthly basis according to their holdings in the LP token $SPI/$ETH vs other liquidity providers.