🖥️DeFi and Negative Tax Use Case in $REWARD

Now that we have laid out the foundation of the two key pillars of blockchain industry, it's time to explain how Reward Tax platform is leveraging the two to bring growth and adoption in the industry.

Reward Tax platform will be a true example of community-driven project as everything that would be developed and released on its platform will be decided by its community i.e., holders. Since we're operating in finance sector, hence adopting decentralised approach in execution of activities would make us fit the bill of DeFi. Also, governing a platform through its community is called governance by DAO. Those who are not familiar with DAO concept, here is a brief description of DAO: DAO governance refers to the use of decentralised autonomous organisations (DAOs) to make decisions and govern certain activities of a platform or product. A DAO is a type of organisation that is run entirely by its community through code and operates on a blockchain network. This means that it has no central authority or leader and is instead controlled by a set of rules that are encoded into its code and driven by its community. In the context of governance, a DAO can be used to make decisions about how a particular project or activity should be managed, with the decisions being made by the members of the DAO who vote on them using the blockchain. This can be a more efficient and transparent way of making decisions than traditional forms of governance.

Reward Tax platform will embrace this 100% and let our community dictates on what should be done in future to take the platform further. A few examples of such decisions are - decision on tax rate, reward sharing split decision, a new feature request, contract migration etc.

Now, let's discuss how negative tax concept is integrated in Reward Tax platform. As we understood from the previous definition, the core of the concept is that an investor gets 100% of the threshold. We take it further and implementing a new way of taxation on transactions and using the tax collected as reward which is distributed among holders. The tax on every transaction would have below split:

On Buying $REWARD:

Buy side tax: -2%

Buy side Negative Tax aka Reward: +4%

So, the net output on the buying side is +2% i.e., 102%

When an investor buys $REWARD tokens, s/he would gets an additional reward of 4% in addition to the 1% reward in BUSD (stable coin).

Buy transaction breakdown: 2% tax, 4% reward

• 1% of tax converted in BUSD and distributed among all $REWARD holders

• 1% of tax collected as reserve tax which would be used to provide strategic price support, buyback, and marketing activities

• 4% of transaction value's equivalent in $REWARD tokens credited to the buyer

So, a buyer is paying 2% tax but receiving 2x (4%) in rewards.

Sell transaction breakdown: 2% tax

Now, on the sell side, there will be tax of 2% with below split:

• 1% tax converted to BUSD and distributed among all $REWARD holders

• 1% tax collected as reserve tax which would be used to buyback and burn using strategic pricing support structure

Reward Tax will be the first project where an investor would receive 2x of its tax vale in rewards, thus making it attractive for buyers. Also, 1% in BUSD reward and deflationary staking makes $REWARD one of the best assets in the DeFi segment.