Taxes and Fees
Rate: 0%
There will be no fees incurred when creating a spell only or single-asset potion, as we feel this unnecessarily penalizes users for buying into the platform. When a spell-only potion is created, 30% of the spell gets burned, 60% goes to the reward pool, and 10% goes to lp. When a single asset potion is created 100% of the assets will go to the treasury where they will be staked or turned into validator nodes( in the case of AVAX). For creating mixed potions and cauldrons, there will be a flat .25 SPELL fee that's used as gas. In the case of mixed potions, all assets supplied will be sent to the multi-asset balancer pool yield vault for that potion, where specific yield generating strategies will apply.
Rate: 10%
When selling SPELL on the market, you will be taxed at a rate of 10%. 50% of the funds derived from this tax goes back to the treasury and the remaining 50% to the rewards pool. This not only helps reduce some of the impact from whales, but it also helps sustain rewards .
Rate: Flat .25 SPELL "gas" fee per Cauldron and Mixed Potion Created
Every time a mixed potion or cauldron is created , users will have to pay .25 SPELL "gas" fee. This provides greater utility to the native token, as it becomes a gas token that powers the platform. 100% of this fee will be burned.
Rate: 45%
A transfer tax of 45% on spell tokens will be applied to all wallet-to-wallet transfers of spell tokens. This is to prevent people from using multiple wallets and bypassing the wallet limits.
100% of the taxes collected from transfers goes back into the treasury.
Rate: 15% Anti Whale Tax
This tax applies to sells above 1000 Spell, and is applied at the time a user sells on top of the existing sales tax. 100% of the Whale tax goes back into the treasury.
Rate: 20 %
A scalpers tax will apply for those who intend to only trade the SPELL token without participating in the ecosystem. This only applies if a user has not created any potions or cauldrons. If a user has created at least 1 potion, this tax doesn't apply. This is meant to incentivize noding up and minimize swing trading. This tax is applied on sells on top of the existing sales tax. 50% of this tax goes to the treasury and the remaining 50% goes to the reward pool.
Rate: Flat $10/month/potion
There will also be a $10 monthly maintenance fee, to be paid in stables for each potion a user owns at the beginning of each calendar month. The type of potion has no bearing on the cost of this fee. Whether a user owns a mixed potion, a spell-only potion, or a single asset potion, it will always be $10/month for each. Users will be able to pay this monthly maintaince fee in a dedicated section on the dapp. For users who don't pay, there will be a two month grace period, after which a 10% weekly penalty rate is applied. For example if a user owns 1 spell-only potion (worth $200 at a market price of $20/SPELL) and he doesn't pay his monthly $10 fee at the beginning of the month, he would have 2 months from that point to pay without penalty. If he doesn't pay within the 2 month grace period, then the weekly penalty kicks in. After the grace period, after the first week, $11 would be due; by week 2, $12.1, by week 3, $13.3. When a user pays his monthly maintenance fees + penalties, he is able to begin claiming and compounding again but forgoes the rewards that accumulated while unpaid.
Last modified 1yr ago