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description: 'Here''s how $PredAI''s tokenomics is structured:'
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# Understanding $PrediAI Tokenomics

**Key Figures**

* **Total Supply:** 20,000,000 $PrediAI
* **Buy/Sell Tax:** 5% on every transaction
* **Maximum Wallet Holding:** 2% of the total supply (399,999 $PrediAI)
* **Maximum Transaction Size:** 2% of the total supply (399,999 $PrediAI)
* **Team Allocation:** 2% of the total supply (400,000 $PrediAI)

**Tax Breakdown (5%)**

* **Liquidity:**  Starting Liquidity will be at 1 ETH and through the taxes we will make buybacks until total liquidity is at 5 ETH.&#x20;
* **Development/Marketing Fund:** The rest will be used to fuel project growth and outreach.

**Benefits of Maximum Wallet/Transaction Size**

* **Mitigates whale manipulation:** Prevents large holders from heavily disrupting the market with sudden, massive sells.
* **Promotes wider distribution:** Encourages a healthier, more diverse community of holders.
* **Enhances price stability:** Limits volatility caused by single, large transactions.

**Team Allocation (2%)**

* **Purpose:** Focused on ensuring consistent development, platform improvements, and marketing initiatives to drive long-term project success.
* **Vesting Schedule:** We will conduct a poll where investors can choose between locking or burning the liquidity.&#x20;

**Transparency & Investor Confidence**

We are committed to being transparent about our tokenomics. This breakdown is designed to provide clarity for investors making informed decisions. We believe our tokenomic structure supports healthy market dynamics, rewards loyalty, and fosters sustainable growth for the $PrediAI project.
