# Auto-Regulating Taxation Lots of projects have buy and sell taxes, much like governments do on individual incomes, business profits or property sales. This helps fund important things which help everyone. For a government this may be schools, hospitals or roads; however with HOLOCLEAR this is used for liquidity, marketing, growing the treasury, and building new functionality (to name a few). Importantly these taxes impact how people and markets behave. HOLOCLEAR uses a mathematical model to adjust the buy and sell taxes to ensure the overall growth of the project. One problem that projects find difficult is high price volatility. If lots of people sell this causes a panic and the price can dramatically drop. With $HOLO if this happened the sell tax would automatically increase, making sellers think twice about their decision and helping maintain stability. ![](/files/zwIWNLyBPUZl9ufxr1Vp) Alternatively there may be times when the project wants to encourage more buyers so lower the taxes to increase demand and growth. What is unique about HOLOCLEAR is that these elements will constantly adjust depending on the real time demand. --- # 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://docs.holoclear.xyz/holoclear/auto-regulating-taxation.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.