> For the complete documentation index, see [llms.txt](https://docs.gpu-fi.uk/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gpu-fi.uk/how-it-works/tax-architecture.md).

# Tax Architecture

Describes the creator tax and its five-way distribution design.

Every GPUFi trade carries a 3% creator tax.

Each destination receives a percentage of that 3% tax. Its effective share of a trade is calculated as:

```
Effective share of trade = 3% creator tax × destination share of tax
```

| Tax destination  | Share of 3% tax | Effective share of trade |
| ---------------- | --------------: | -----------------------: |
| Burn             |              5% |                    0.15% |
| Mining Pool      |             25% |                    0.75% |
| Holder Sharing   |             15% |                    0.45% |
| Treasury         |             30% |                    0.90% |
| Operator Reserve |             20% |                    0.60% |
| **Total**        |        **100%** |                **3.00%** |

### Burn

5% of collected tax is burned. This equals 0.15% of every trade.

### Mining Pool

25% of collected tax funds the mining pool. This equals 0.75% of every trade. The mining pool is the initial source of mining rewards.

Future GPU rental and inference API revenue are also intended to contribute to the pool.

### Holder Sharing

15% of collected tax goes to holder sharing. This equals 0.45% of every trade. It is intended for long-term holders with at least 2,000,000 $RIG. Distribution follows a halving schedule.

### Treasury

30% of collected tax goes to treasury. This equals 0.90% of every trade. Treasury funds are intended for GPU acquisition, development, and growth.

Once physical GPUs exist, the project intends to publish relevant hardware and operational reporting.

### Operator Reserve

20% of collected tax goes to the operator reserve. This equals 0.60% of every trade. The reserve is intended to remain available until real operators with real hardware participate. It is not intended for non-compute contributors.

{% hint style="info" %}
Tax revenue depends on trading activity. Phase 1 has no GPU rental revenue, and the treasury does not yet imply GPU ownership.
{% endhint %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://docs.gpu-fi.uk/how-it-works/tax-architecture.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.