# Transaction Tax

BaseHaven has introduced a transaction tax system that applies a 3% fee to all token buying and selling activities on the platform. This tax is designed to stabilize market dynamics, curb excessive speculation, and generate funds for crucial ecosystem functions.

**Tax Allocation:**

* **Buy Back & Burn:** A portion of the funds collected from the transaction tax is allocated to the Buy Back & Burn program. This helps reduce the total number of tokens in circulation and stabilize token prices.
* **Ecosystem Development Fund:** Another portion of the tax revenue is used to support the ongoing development of the platform, including funding for marketing initiatives and community rewards.