> For the complete documentation index, see [llms.txt](https://collect-token-solana.gitbook.io/collect-token-solana/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://collect-token-solana.gitbook.io/collect-token-solana/tax-breakdown.md).

# Tax Breakdown

Each transaction of $CLT incurs a 10% tax, which is strategically allocated to benefit both holders and the ecosystem. Here’s how the tax is distributed:

#### 1. **5% Solana Reflections to Holders**

* Half of the transaction fee is swapped to Solana (SOL) and automatically distributed to all holders.
* The more $CLT you hold, the more SOL you receive.
* This mechanism incentivizes long-term holding and rewards the community.

#### 2. **1% Jackpot**

* A portion of the tax is allocated to a jackpot pool.
* The jackpot may be used for community rewards, events, or other incentive-based mechanisms.

#### 3. **4% Marketing Wallet**

* Ensures continuous growth and exposure for $CLT.
* Used for partnerships, influencer promotions, and exchange listings.
* Helps expand adoption and increase liquidity.

#### 4. **0.25% CPMM AMM Raydium LP**

* A fraction of the tax is allocated to the Constant Product Market Maker (CPMM) Automated Market Maker (AMM) on Raydium.
* This strengthens the liquidity pool and enhances price stability.

By implementing this tax structure, $CLT creates a self-sustaining ecosystem that benefits holders, ensures project longevity, and fuels continuous growth.