Transfer Tax & Reflect
Last updated
Last updated
We have different transfer tax amounts for our native tokens:
GPUL will have 8% transfer tax; 1% will be reflected to reward pool of leaderboard and 7% will be burned.
GBNT will have 8% transfer tax, all of which will be burned.
These are the cases transfer tax happens with GPUL and GBNT:
Adding/removing liquidity with GBNT and/or GPUL
Selling/buying GBNT or GPUL
Sending GBNT or GPUL
Staking and unstaking GBNT or GPUL
Harvesting/Compounding GBNT or GPUL
*Non native tokens are not affected by transfer tax. We cannot take tax from tokens other than our natives.
*Once you have a native LP, it is not affected from transfer tax. For example, when you stake/unstake a GPUL/MATIC LP, it is not subjected to any taxes or fees. You will only pay tax when adding and removing liquidity.
Isn't it too much?
The short answer is no.
The long answer lies beneath how the economic model works on our platform, and there are many reasons for this tax.
The first reason is that you actually do not lose money as an individual because everybody is paying the same tax. When everyone pays the same tax, the inflation is prevented by a collective effort; thus, your remaining 92% is much safer. Keeping 100% of your tokens is not fun when they worth nothing because of inflation. Check the stats for BPUL below; If that burned amount was not high, this would be a dead farm already:
The second reason is to stop bots and swing traders. Imagine you buy a good amount of our natives, and someone who was waiting for this in front of the screen dumps on you to make a quick profit. This always happens with those tokens if there is no penalty for making quick profits. With these taxes, people will think twice before making an exit because they have to pay taxes again if they want to buy back. This method effectively stops swing traders, bots and price manipulators; It also encourages long term holders since they can have a sustainable income without fear of inflation after they pay the taxes. Everyone who buys/sells after you get in will burn tokens to increase the value of your holdings.
The third reason is the promotion of games. People keep asking why it is with so much tax to trade GPUL/GBNT pair. The answer is clear; they can be converted to each other without the heavy tax penalty if you play the games. You can use your GPUL to earn GBNT from the Bounty Hunter, and you can use your GBNT to earn GPUL from leaderboard. The taxes may seem unfair at first, but none of these tokens are taken by our team; they are all burned automatically, and they are necessary to preserve the value of your holdings.
