> For the complete documentation index, see [llms.txt](https://avabot-organization.gitbook.io/avabot-sniping-bot-on-avalanche/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://avabot-organization.gitbook.io/avabot-sniping-bot-on-avalanche/tokenomics/tokenomics-explained.md).

# Tokenomics Explained

**Understanding $AVB Tokenomics**

The $AVB token is designed with a clear and strategic financial structure to ensure stability, growth, and fair distribution for all its holders.

* **Total Supply**: The entire circulation of $AVB tokens is capped at 10 000. This limited supply ensures scarcity and potential value appreciation over time.
* **Transaction Tax**: Every transaction involving $AVB incurs a 10% tax. This tax is split evenly with 5% applied to buys and 5% to sells. Additionally, AVABOT takes a 1% fee on every transaction, further contributing to the ecosystem's sustainability. This structure is designed to discourage frequent trading and promote holding, stabilizing the token's price.
* **Initial Liquidity**: To ensure a smooth trading experience and avoid drastic price fluctuations, we'll be adding 62 $AVAX in the AVB/AVAX pool
* **Marketing Allocation**: 5% of the total supply is reserved for marketing. This ensures that the project has sufficient funds for promotions, partnerships, and other growth-oriented activities.
* **Team Allocation**: Another 5% is set aside for the team. This allocation compensates the dedicated individuals behind $AVB for their efforts and commitment.
* **Liquidity**: A significant 90% is channeled towards liquidity. This high liquidity allocation ensures that the token remains easily tradable and less susceptible to price volatility.

In essence, the $AVB tokenomics is a reflection of a well-thought-out strategy, aiming to balance growth, stability, and fair distribution.

**Whether you're an investor or a casual holder, understanding these fundamentals can provide insights into the token's potential trajectory and the team's vision for its future.**