# Transaction Tax Mechanism

To promote long-term sustainability and create a self-reinforcing token economy, a 5% transaction tax is applied to all buy and sell transactions involving RBT on decentralized exchanges. This tax is not applied to in-game transactions, staking interactions, or wallet-to-wallet transfers within the ecosystem.

**The tax serves three primary functions:**

* 2% – Development Fund\
  This portion supports ongoing game development, infrastructure scaling, security audits, and operational costs. It ensures continuous delivery of features, performance upgrades, and platform stability.\ <br>
* 2% – Liquidity Pool\
  Used to strengthen decentralized exchange (DEX) liquidity, reducing price volatility and slippage for users. Liquidity is either auto-injected or managed through dedicated treasury contracts.\ <br>
* 1% – Buyback & Burn\
  A portion is reserved for periodic token buybacks from the open market. Purchased tokens may be burned to reduce circulating supply or used for future strategic needs such as limited reward campaigns.\ <br>

This dynamic tax mechanism enables Kart Rumble to fund development, protect the market, and introduce controlled deflation — all without relying on external capital injections or inflationary token minting.

The structure may be refined over time through community governance as market conditions evolve.


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