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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