> For the complete documentation index, see [llms.txt](https://legal-x.gitbook.io/legal-x/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://legal-x.gitbook.io/legal-x/backed-by-legal-x/mlmx-exchange/tax-pay-down-model.md).

# 📊 Tax Pay-Down Model

MLMX Tax Pay Down Model

The MLMX Exchange introduces a sustainable, cross-chain tax model that drives value through its native token ($MLMX on Solana) and its associated token ($LEGAL on Ethereum). \
\
This structure is designed to reward holders, amplify long-term token utility, and create compounding benefits as the ecosystem grows.

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### 🔁 How It Works

<figure><img src="https://3410133729-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FbTxeiG4qPTMx9RV1RkQ2%2Fuploads%2FRibmvHMSrMGnEMia3r83%2Fphoto_4_2025-07-24_13-40-53.jpg?alt=media&amp;token=c2753da3-dd90-4c10-ba51-92236a1fde03" alt=""><figcaption></figcaption></figure>

**1.&#x20;**<mark style="color:purple;">**Token Launches on MLMX**</mark>\
MLMX aims to launch **20-30 tokens per year** via its U.S based centralized-based exchange.\
Each token includes a **2% buy/sell tax** on every transaction.

**2.&#x20;**<mark style="color:purple;">**Taxes Flow Into $MLMX**</mark>\
The 2% tax collected from every buy and sell of these tokens is redirected into the **$MLMX token**, increasing its value, trading volume, and ecosystem relevance.

**3.&#x20;**<mark style="color:purple;">**$MLMX to $LEGAL Cascade**</mark>\
From there, **2% of all $MLMX transaction volume** is automatically routed to the **$LEGAL token**, which operates on Ethereum.  This helps fund the legal wallet which allows us to pursue crypto scammers in County, State, or Federal Court.&#x20;

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### 📈 Why It Matters

* With 20 tokens launched annually, up to **40% of total tax volume** flows back into the MLMX ecosystem.
* $MLMX becomes the central hub of tax routing and value accumulation.
* $LEGAL benefits as $MLMX volume grows, enabling an ongoing flow of value across chains.

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### 🎯 Strategic Benefits

* 🚀 Drives value through ecosystem-wide token launches
* 🔗 Bridges utility between **Solana and Ethereum**
* 💡 Aligns tokenomics with **growth and sustainability** for all participants

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Stay updated with token launches, tax statistics, and system performance via our official communication channels.