➗Tax
Detailed Breakdown of the Tax Allocation
Thovt DAO Treasury (3%): The treasury serves as the financial backbone of Thovt DAO. By allocating 3% of all token transactions to this treasury, Thovt ensures a reservoir of funds ready to be deployed for strategic investments. These investments aim to provide higher profits, increasing the overall benefit for the Thovt community.
Community Proposals (1%): This community fund empowers members to propose and vote on how to use these resources, whether for organizing meetups, innovative marketing efforts, or other community-led initiatives.
Operational Fund (1%): Keeping the wheels of the organization turning smoothly requires resources. Hence, 1% of every token transaction is channeled into the Operational Fund. This allocation is utilized for meeting regular expenses.
How the Tax Mechanism Functions on DEX (Decentralized Exchanges)
Decentralized Exchanges (DEX) are pivotal to the modern crypto ecosystem. Thovt DAO's tax mechanism, when implemented within a DEX environment, is carefully engineered to ensure smooth and efficient transactions. Here's how the process unfolds:
Transaction Initiation: When a user initiates a token transaction on a DEX that involves THOVT tokens (be it buying, selling, or trading), the DEX's smart contract automatically detects and processes the transaction.
Automatic Tax Deduction: Post the initiation, the smart contract integrated within the DEX automatically deducts the pre-defined tax (5%) percentage from the transaction amount. This means that the tax is seamlessly subtracted without requiring any additional steps or inputs from the user.
Tax Allocation: Following the deduction, the tax amount is automatically divided based on the predetermined ratios:
3% is sent to Thovt DAO's Treasury.
1% is channeled to the Community Fund.
1% is channeled to the Operational Fund.
Reflecting in Wallets: For the treasury dividends, token holders will notice an incremental increase in their THOVT token balance in their respective wallets over time. This allows token holders to earn passively, even if they aren't actively trading or investing.
Transparency and Confirmation: After the transaction is complete, participants can view the detailed breakdown on Thovt's dedicated dashboard.
Last updated
