> 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 GPUF. 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 %}


---

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