# Where does $SPE come into play in the ecosystem? What are the Tokenomics and uses for it? * $SPE has 3 main functions for taxes in the smart contracts: reflections, liquidity, and staking pool. With reflections, a small percentage of each transaction with a smart contract such as Pancakeswap or QuickSwap is taxed, and that gets redistributed between holders. * The liquidity function acts similarly, but the tax goes to liquidity for the token, creating a stronger price floor. We like to keep the liquidity around 10% of the market cap, so this is adjusted accordingly to market conditions but never goes above a couple percentages. The staking pool tax has not been used as of yet, but when our staking platforms are live, we will reduce reflections to 0% and replace them with the staking pool tax, and taxes will be funneled directly into the staking pool proving stakers with rewards. * Apart from the smart contract functions, for sales of carbon credits, there is also a larger portion that goes to staking, and we have many renewable energy projects in the beginning stages of development in which profits will also be redistributed to holders via the staking platform. * To sum it up, $SPE plays an integral role when it comes to our carbon credits. --- # 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://saveplanetearth.gitbook.io/spe-documentation/faqs/where-does-usdspe-come-into-play-in-the-ecosystem-what-are-the-tokenomics-and-uses-for-it.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.