> For the complete documentation index, see [llms.txt](https://sol-reserve-1.gitbook.io/sol-reserve-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sol-reserve-1.gitbook.io/sol-reserve-docs/solr-token/taxation.md).

# Taxation

## Taxation of SOL Reserve (SOLR)

SOL Reserve (SOLR) implements a 7% transaction tax on all SOLR activities (buy, sell, stake, unstake) to power its Solana-based GameFi and staking ecosystem. This tax ensures sustainability, rewards participation, and drives long-term value for our [Telegram](https://t.me/solr_everse) and [Twitter](https://x.com/solr_eserve) community. Here’s a detailed breakdown:

## Overview of the 7% Tax

OLR levies a 7% tax on every transaction to distribute value across its ecosystem, supporting staking, gaming, liquidity, deflation, and marketing. This structure balances utility and scarcity, aligning with Solana’s efficiency.

## Detailed Tax Breakdown

* **3% Staking Rewards:** 
  * Paid in SOL to users staking SOLR, funded by this portion of the tax.
  * No lock-up period—stake or unstake anytime via our dApp, fostering flexibility for our community.
  * Ensures stakers earn passive income, driving engagement on Telegram and Twitter.
* **1% Gaming Rewards:** 
  * Paid in SOLR to users playing our Telegram GameFi (Game International), funded by this tax portion.
  * Rewards participation in our play-to-earn game, enhancing user retention and fun on Solana.
  * Supports the growth of our gaming ecosystem, accessible via Solana wallets.
* **0.5% Automated Liquidity:** 
  * Added automatically to the SOLR/SOL liquidity pool on Raydium, executed via the token contract.
  * Grows liquidity organically with transaction volume, ensuring trading stability and reducing slippage for SOLR on Solana.
  * Reinforces SOLR’s long-term market health for our community.
* **0.5% Deflationary Burn:** 
  * Permanently burned to reduce the total SOLR supply (1 billion at launch), increasing scarcity and potential value over time.
  * Applies to all transactions (buys, sells, stakes, unstakes), creating a deflationary pressure that benefits holders.
  * Enhances SOLR’s economic model, appealing to our Telegram and Twitter audience.
* **2% Marketing Wallet:** 
  * Converted to SOL via Raydium and allocated to a marketing wallet for community growth initiatives.
  * Funds airdrops, Twitter campaigns, exchange listings, and Telegram engagement to expand our reach to 5,000+ followers.
  * Ensures transparency with on-chain tracking, building trust in SOLR’s ecosystem.

## Economic Impact 

* The 7% tax sustains SOLR’s ecosystem by rewarding stakers and gamers, growing liquidity, reducing supply, and promoting adoption.
* It balances immediate utility (staking, gaming) with long-term value (deflation, liquidity), ensuring a thriving Solana-based community.
* Our transparent tax structure supports SOLR’s growth on Telegram, Twitter, and beyond.