> For the complete documentation index, see [llms.txt](https://enetecosystem.gitbook.io/foundation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://enetecosystem.gitbook.io/foundation/usdfound/burn-mechanism.md).

# Burn Mechanism

The $FOUND tax structure is designed to support the ecosystem's growth and sustainability. At the time of launch, there will be an 8% sales tax imposed on transactions, which will later decrease to 4%.

The tax proceeds will be allocated to various essential components of the ecosystem, serving multiple purposes. Specifically, 2% of the tax will be dedicated to buybacks and burns of both $ENET and $FOUND tokens. This mechanism aims to enhance scarcity and value for both tokens, benefiting all token holders.

Additionally, 2% of the tax will be channeled into the staking wallet, further promoting the staking benefits of both tokens