# FEG Tokenomics

### Overview

FEG uses buy and sell taxes to support core protocol functions.

Those taxes fund staking, backing growth, liquidity, operations, and burn mechanics.

Wallet-to-wallet transfers stay tax-free.

### Quick facts

* **Chain:** BNB Chain
* **Total supply:** 100 billion FEG
* **Buy tax:** 3%
* **Sell tax:** 5%
* **Transfer tax:** 0%

### Supply

The total supply of FEG is **100 billion** tokens.

The circulating supply can decrease over time because FEG includes built-in burn mechanics.

### Current tax structure

The values below show the current FEG tax structure.

<table><thead><tr><th width="238">Tax type</th><th width="150" align="center">BUY 3%</th><th width="150" align="center">SELL 5%</th></tr></thead><tbody><tr><td>Staking</td><td align="center">1%</td><td align="center">1%</td></tr><tr><td>Asset Backing</td><td align="center">0%</td><td align="center">0.5%</td></tr><tr><td>Marketing &#x26; Development</td><td align="center">0%</td><td align="center">0.5%</td></tr><tr><td>Liquidity injection</td><td align="center">0%</td><td align="center">1%</td></tr><tr><td>Burn</td><td align="center">2%</td><td align="center">2%</td></tr></tbody></table>

{% hint style="success" %}
Buy tax stays lower than sell tax. Sell activity funds more reserve growth, liquidity, and operations.
{% endhint %}

### What each tax supports

#### Staking rewards

The staking allocation funds rewards for [FEG stakers](https://docs.feg.io/feg-smartdefi-tm/feg-staking).

This ties token activity back to holders who keep tokens in staking.

#### Asset-backing growth

The backing allocation grows the on-chain reserve.

That reserve supports burn-for-backing and interest-free [SmartLending](https://docs.feg.io/smartdefi-tm-platform/smartdefi-protocol/smartlending). Learn more in [Asset-Backing](https://docs.feg.io/smartdefi-tm-platform/smartdefi-protocol/asset-backing).

#### Marketing and development

This allocation supports ecosystem operations.

That includes product work, infrastructure, exchange support, and ongoing platform maintenance.

#### Liquidity injection

The liquidity allocation helps deepen market liquidity.

That can reduce price impact during larger trading periods.

#### Burn

The burn allocation reduces supply over time.

That helps tighten supply while supporting the token’s backing model.

### Example

If a user buys **1,000 FEG**, a **3%** buy tax allocates **30 FEG** across the tax buckets.

If a user sells **1,000 FEG**, a **5%** sell tax allocates **50 FEG** across the tax buckets.

### Next steps

* See how FEG fits into the ecosystem in [About FEG token](https://docs.feg.io/feg-smartdefi-tm/about-feg-token)
* Learn how reserve value works in [Asset-Backing](https://docs.feg.io/smartdefi-tm-platform/smartdefi-protocol/asset-backing)
* Learn how borrowing works in [SmartLending](https://docs.feg.io/smartdefi-tm-platform/smartdefi-protocol/smartlending)


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