# Tax

We will be implementing a tax on every transaction to deal with inflation. The tax will be 5% per transaction and it will be split into the following:

* 1% will be burnt
* 4% will be converted into BNB LP token to improve the overall liquidity of the pool, reducing the price impact per transaction

![](https://4071037031-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-Ma4NSYmCeIR-dggKX-W%2F-Ma4SmE0fSjjUhw43n9K%2F-Ma4uuz-lETK-XG4MW0w%2Fimage.png?alt=media\&token=97976e4d-e7a5-413a-b6f0-d2a8fc3f152e)


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