# Auto-compounding

$LOOT and $xLOOT holders have the option to opt for auto-compounding where they can reinvest their revenue share rewards back into $LOOT, encompassing the accumulation of rewards not only on their original holdings but also on previously acquired rewards.

{% hint style="info" %}
The benefits of auto-compounding extend even further. By participating:

* You'll also enjoy an exemption from the 5% buy tax. 
* The buy transactions will be gas-free
  {% endhint %}

### How to 

Simply toggle on the auto-compounding option. 

Once activated, the magic happens: each time your revenue share earnings surpass $100 (approximately 0.05 ETH), they will be automatically converted into $LOOT, growing your share of the rewards overtime.

Auto-compounds will occur **once per epoch** should the rewards are sufficient and users have the feature enabled.