# Transaction Taxes

Hate taxes? Not these! Based Monsta’s transaction taxes are here to work *for you*, stacking the vaults, burning tokens, and keeping the ecosystem alive and throbbing. Every trade, whether a buy or a sell, feeds the beast and boosts your bags.

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### Total Tax: 3% (on buys and sells)

Like a slap and a tickle – it stings just enough to keep things interesting 😏

* **Buy Tax: 3% → Vault**
  * When you buy, the full 3% tax goes directly to the [**Vault**](https://docs.monstacorp.com/based-monsta/rewards/vault-system), stacking assets like $CAKE to grow the reward pool. It’s all about building long-term value and fattening your [future claims](https://docs.monstacorp.com/based-monsta/rewards).
* **Sell Tax: 3% → Split Between Vault & Burn**

  Selling takes a slightly different approach:

  * **2% → Vault**: Continues to build up assets for the reward pool.
  * **1% → Burn**: These tokens are removed from circulation forever, shrinking the supply and increasing your vault share as a holder.

  **Why the difference?** Simple: Buy tax is focused entirely on growth, while sell tax balances growth with deflation to reward loyal holders who stick around and burn 🔥

{% hint style="info" %}
Every transaction strengthens the ecosystem, whether it’s feeding the vault or shrinking the token supply.
{% endhint %}

## Why Taxes Matter

These aren’t your standard “line the devs’ pockets” taxes, instead, they're used to build long-term value for holders in these key ways:

1. **Reward Holders**: Vault assets mean gains for the loyal.
2. **Shrink Supply**: Burning tokens reduces the total circulating supply, which can not only positively impact token price but in the case of $MONSTA holders, it also determines your share of the vault assets!
3. **Fund the Future**: The vault ensures sustainability, even in wild times!

<figure><img src="https://4030393688-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyFDfmSa8caTXJa7yiwri%2Fuploads%2FhBIBsLVCauYaiKzrq80j%2FTransactionTaxPillars.png?alt=media&#x26;token=fea0e0f2-2d9c-4907-a060-d97f34479758" alt="" width="375"><figcaption></figcaption></figure>