> 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/tokenomics/tax-distribution.md).

# Tax Distribution

Breaks down how creator tax proceeds are allocated across the ecosystem.

Every GPUFi trade carries a **3% creator tax**.

| Destination      | Share of 3% Creator 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%** |

**Share of Creator Tax** shows how the 3% tax is divided. **Effective Share of Trade** shows how much of the original trade value reaches each destination.

$$
\text{Effective Share of Trade} = 3% \text{ Creator Tax} \times \text{Tax Destination Allocation}
$$

For example:

* Mining Pool: `3% × 25% = 0.75%`
* Treasury: `3% × 30% = 0.90%`
* Burn: `3% × 5% = 0.15%`

{% hint style="info" %}
25% of creator tax is not 25% of the trade. It equals 0.75% of the trade.
{% endhint %}

### Burn

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

### Mining Pool

25% of creator tax goes to the mining pool. This equals 0.75% of every trade.

This is the initial source of mining rewards. Future GPU rental and inference API revenue are intended to contribute additional revenue to the pool.

### Holder Sharing

15% of creator tax goes to holder sharing. This equals 0.45% of every trade.

Holder sharing is intended for long-term holders. Eligibility requires holding at least 2,000,000 GPUF. Distribution follows a halving schedule.

### Treasury

30% of creator tax goes to treasury. This equals 0.90% of every trade.

The treasury is intended to fund GPU acquisition, development, and growth. Phase 1 does not have physical GPUs. Phase 2 is intended to use treasury accumulation to purchase the first GPUs.

### Operator Reserve

20% of creator 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 to be paid to non-compute contributors.

{% hint style="warning" %}
Tax revenue depends on trading activity. The 3% creator tax defines the distribution of revenue when trades occur; it does not create a guaranteed amount of revenue.
{% endhint %}

See [Supply & Parameters](/tokenomics/supply-and-parameters.md) for the complete numerical reference.


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