# Tax Distribution Glow's tax distribution mechanism is designed for clarity and efficiency. When a transaction occurs, the configured tax is collected and immediately routed to its designated destinations. This can include: •**Treasury Wallet**: This portion of the tax is sent to a designated wallet. Ideal for funding project development, marketing, operations, or charitable donations. •**Liquidity Pool**: Automatically adds a portion of the tax revenue to the token's liquidity pool (LP). During the bonding curve phase, these funds are accumulated and then paired with tokens to create a deeper LP on Meteora at launch. •**Buy Back/Burn** : This portion of the tax is used to automatically buy back the token from the market and permanently burn it. This reduces the total supply, creating deflationary pressure on the token's price. •**Holder Rewards**: Taxes can be redistributed to existing token holders, incentivizing long-term holding. The exact breakdown and flow are determined by the creator during the configuration phase. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://glowfun.gitbook.io/glowdotfun/introduction/tax-distribution.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.