> 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/tokenomics.md).

# Tokenomics

## Tokenomics of SOL Reserve (SOLR)

SOL Reserve (SOLR) operates on a Solana-based token economy designed to reward participation, ensure sustainability, and create long-term value for our Telegram and Twitter community. Here’s a detailed breakdown of SOLR’s tokenomics:

## Token Supply and Distribution

* **Total Supply:** 1,000,000,000 SOLR (1 billion at launch).
* **Initial Distribution:** 
  * 40% Presale (400M SOLR) - Sold to the community to fund launch activities.
  * 40% Liquidity (400M SOLR) - Allocated to the initial SOLR/SOL pool on Raydium for trading stability.
  * 10% Team (100M SOLR) - Locked for 6 months and release1.66% every month to ensure long-term commitment.
  * 10% Reserve (100M SOLR) - Reserved for development, rewards, initial burn, and emergencies.

## Taxation Structure

**SOLR** implements a 7% tax on all transactions (buy, sell, stake, unstake) to power its ecosystem:

* **3% Staking Rewards:** Paid in SOL, funding rewards for users staking SOLR, with no lock-up period.
* **1% Gaming Rewards**: Paid in SOLR, supporting rewards for our Telegram GameFi (Game International).
* **0.5% Automated Liquidity**: Added to the SOLR/SOL pool on Raydium, ensuring trading stability and growth.
* **0.5% Deflationary Burn**: Permanently burned to reduce supply, increasing scarcity and potential value over time.
* **2% Marketing Wallet:** Converted to SOL via Raydium, used for airdrops, [Twitter campaigns](https://x.com/solr_eserve), and exchange listings.

## Economic Mechanisms

* **Deflationary Design**: The 0.5% burn per transaction shrinks the 1 billion SOLR supply, creating long-term value for holders.
* **Automated Liquidity Growth**: The 0.5% pool addition ensures liquidity scales with transaction volume, supporting SOLR’s trading health on Solana.
* **Reward Incentives:** Staking and gaming rewards drive engagement, funded by the 3% and 1% tax allocations, fostering a vibrant community on[ Telegram](https://t.me/solr_everse) and [Twitter](https://x.com/solr_eserve).

## Value Creation

SOLR’s tokenomics balance utility (staking, gaming) and scarcity (burns), ensuring:

* Stakers earn SOL passively.
* Gamers earn SOLR through play.
* Holders benefit from deflation and liquidity growth.
* The ecosystem sustains itself through the 7% tax, supporting marketing and development for long-term growth.