▫️Tokenomics
Straight to the point.
Last updated
Straight to the point.
Last updated
Snow Bank has implemented a strategic financial mechanism within the SNOW token to encourage sustainable growth and value retention. This document details the tax structure of the SNOW token, focusing on its no buy tax feature and the 6% sales tax designed to counteract inflation.
Facilitating Acquisition:
The SNOW token is designed to be accessible and investor-friendly. In line with this principle, there is no tax on purchasing SNOW tokens.
This approach encourages new investments and simplifies the process for investors to acquire SNOW tokens, fostering a more inclusive DeFi environment.
SNOW token incorporates a 6% sales tax on all transactions where SNOW tokens are sold.
This tax is automatically applied and does not require any action from the token holders.
Purpose and Functionality:
The primary goal of this sales tax is to combat inflationary pressures within the SNOW token ecosystem.
The entire 6% sales tax is automatically directed towards a burn mechanism, effectively removing those tokens from circulation.
Auto-Burn Mechanism:
6% Sales Tax on all SNOW Sales Automatically Burns (Hard Coded)
By permanently reducing the total supply of SNOW tokens over time this helps maintain the token's scarcity and value.
Encouraging Long-Term Holding:
The absence of a buy tax makes it more attractive for investors to acquire SNOW tokens, while the sales tax incentivizes longer-term holding, reducing sell-off pressures.
This structure aligns with Snow Bank’s vision of fostering a stable and growth-oriented community.
Sustainable Tokenomics:
The 6% sales tax and accompanying auto-burn feature are key components of SNOW’s sustainable economic model.
By carefully balancing incentives and disincentives, Snow Bank aims to ensure the long-term viability and health of the SNOW token.
Transparency and Predictability:
The clear and upfront disclosure of the tax structure provides transparency and predictability for investors, allowing them to make informed decisions.
The financial architecture of the SNOW token in Snow Bank, characterized by no buy tax and a 6% sales tax with an auto-burn feature, reflects a thoughtful approach to building a robust and sustainable DeFi platform. This structure is integral to maintaining the token’s value, encouraging responsible investment behavior, and ensuring the longevity of the Snow Bank ecosystem.