Pandora X Taxes
BUY 4% Auto LP 5% Pandora Insurance 2% Treasury 2% Abyss Total: 13% SELL 4% Auto LP 5% Pandora insurance 8% Treasury 2% Abyss Total: 19%
What are dynamic taxes?
Dynamic taxes are an innovative concept, which aims to minimize price manipulation by taxing sales/wallet transfers additionally based on how big of a share the holder has in correlation to the LP of Pandora X. This means that somebody with a lot of tokens in the ecosystem cannot dump the market without leaving a share of it in the hands of the community, making future attempts harder and harder. How many $PANX tokens you hold is taken into account when calculating how big of a share of the LP you hold. For every 1% that you hold, the tax is increased by 5% until there's a total sell tax of 70%.
A simple calculation: 1% of LP - 5% tax 2% of LP - 10% tax 3% of LP - 15% tax 4% of LP - 20% tax so on and so forth.
This tax does not affect the ordinary buyer because of the sheer volume of LP one would need to have to make such a share possible.
Why did you implement this tax?
Previous rebase tokens have been repeatedly manipulated, leaving the rest of the community with losses that cannot be recovered through simple staking. We're dealing with the APY issue through taxes. We believe that, whereas the other protocols believed that blacklisting had valid justification, we do not intend to do so. So, thanks to the concept, we're adding on top of taxing entry and exits by innovating the mechanic by creating tax brackets to reduce the frequency of these problems.