> For the complete documentation index, see [llms.txt](https://doortoken.gitbook.io/nil-help/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doortoken.gitbook.io/nil-help/nil-coin/what-happens-on-buy-sell-transfer.md).

# What happens on Buy/Sell/Transfer

When a transaction occurs on the NIL Contract (buy, sell, transfer) the contract will tax 15%. The purpose of the 5/5/5 Tax is to reward holders and maintain the health of the token. Here is how it benefits NIL Holders:

* 2% Burn increases the value of tokens because there are less tokens in circulation.
* 3% Marketing Fee
* 5% to liquidity pool helps build stronger liquidity (which is very important in order to sell NIL)
* 5% to reflexions rewards all holders of NIL.

The mathematical model dramatically increases the value of tokens the earlier a person owns and the longer they hold the token. Rewarding this behavior will have a positive impact on the value of the token long term.

### How it works

The contract automatically manages the distributions of the 5/5/5 model. 

![](https://1683309401-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQfHhOQJ97REIVM30aTjm%2Fuploads%2FGXcBpMsVCpBIjFWQNBNk%2Fnil.png?alt=media\&token=1a560774-0050-4aaf-8b00-570abd1df57c)