$MANSA Whitepaper
  • I. Introduction
    • Our Vision
  • Tokenomics
    • Introduction
    • Tokenomics Overview
    • Token Distribution
    • Tax Structure
      • Liquidity Tax
      • Reward Pool Tax
      • Operations Tax
    • Use of Deployment Wallet
      • $MANSA Gradual Decentralization
    • Wallet Addresses
    • Conclusion
  • Mansa Musa: The Golden Odyssey - Play-to-Earn Crypto Game Whitepaper
  • DAO Governance
  • Play-to-Earn Reward Pool
  • NFT's & NFT's Marketplace Overview
    • Mansa Musa's Metaverse
  • Staking & Staking Rewards
  • Roadmap
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  1. Tokenomics
  2. Tax Structure

Liquidity Tax

The 1% Liquidity Pool (LP) tax on sells for $MANSA, with the added feature of being auto-burned, serves a crucial role in enhancing the strength of the game and its development. Here's a detailed insight into how this mechanism contributes to the project's vitality:

1. Auto-Burning Liquidity Tax:

  • When a user sells $MANSA tokens, a 1% LP tax is applied to the transaction.

  • The collected LP tax is not added to the liquidity pool but is auto-burned or permanently removed from circulation.

2. Scarcity and Value Appreciation:

  • Auto-burning the LP tax creates a deflationary effect, gradually reducing the total supply of $MANSA tokens over time.

  • As the token supply decreases, each remaining token becomes scarcer, potentially leading to value appreciation.

3. Long-Term Incentives:

  • Auto-burning LP tax provides a strong incentive for users to hold $MANSA tokens for the long term. They anticipate that the scarcity and value appreciation can be beneficial in the future.

4. Game Development and Sustainability:

  • The burning mechanism indirectly supports the strength of the game by ensuring the sustainability of the native token ($MANSA).

  • A token with a stable and appreciating value can attract more investors and contributors to the project, which can secure the necessary resources for development.

5. Economic Security:

  • The auto-burning LP tax demonstrates the project's commitment to managing token supply and value over time. This economic security can enhance trust and confidence among token holders and investors.

6. Price Stability:

  • A token with a controlled supply is less prone to dramatic price swings, contributing to overall price stability. This is essential for the long-term viability of the token and the game.

7. Efficient Trading:

  • By reducing the total supply and ensuring a stable price, the auto-burning LP tax helps make trading more efficient. Reduced slippage and more predictable price movements can create a better trading experience.

In summary, the auto-burning LP tax not only supports token value and scarcity but also indirectly contributes to the game's development by attracting resources and fostering a strong and loyal community.

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Last updated 1 year ago