Hybrid Model Taxation

Genesis DAO implements a hybrid model of taxation, where the treasury holds both ETH and GEN.

The hybrid rate of collecting these assets is adjustable with a cap. For example, if the sell tax is 15%,

0-6% Will be in ETH

9-15% Will be in Tokens

Subject A

Total tokens sold

Protocol Sell tax

Tokens percentage in the tax

ETH percentage in the tax

ETH sent to the seller after the swap

No taxes

100k

0

0

0

1 ETH

With hybrid model

100k

15%

90%

10%

-

-

100k

15,000

$GEN

90% of 15k=

13,500

$GEN

10% of 15k=

1500 $GEN

Swapped to 0.015 ETH

0.85 eth

Treasury received assets

-

-

12k tokens

0.015 eth

-

In this table, Subject A is selling 100k tokens, 15% of it will be taxed = 15000

The protocol will only send 90% [13.5k] to the treasury in the form of tokens And 10% [1.5k tokens> 0.015 ETH] will be swapped back to ETH and sent in the form of ETH

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This innovative approach ensures a balanced ecosystem by allowing flexibility in asset management while mitigating price dumps during marketing or the reinvestment of treasury assets in empowering the $GEN ecosystem (3. Heavy Deflation).

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