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.
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
3%
90%
10%
-
-
100k
3,000
$GEN
90% of 3k=
2,700
$GEN
10% of 3k=
300 $GEN
Swapped to 0.015 ETH
0.85 eth
Treasury received assets
-
-
2,400 tokens
0.015 eth
-
In this table, Subject A is selling 100k tokens, 3% of it will be taxed = 3,000
The protocol will only send 90% [2,700] to the treasury in the form of tokens And 10% [600 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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