NEKO taxes balance high emissions via deflationary token burns and recycled rewards
NEKO is the first on NEAR Protocol to implement a smol tax on transactions! The NEKO tax is programmed in the token metadata. NEKO holders benefit from substantial ecosystem rewards including farming, learn-to-earn, content creation and more. The tax on NEKO when sold balances these inflationary rewards to facilitate a sustainable environment that NEKO can flourish in.
The NEKO tax begins as a tiny 5% fee. The tax fee percentage declines overtime in relation to the reduction of NEKO emissions per the Emissions Schedule. When emissions are complete the NEKO tax rate will be zero.
Traditional tokenomics models are often missing a fundamental economic component; balance. High token emissions are seen as a marketing tool instead of the silent killer which inflation is known to be. The NEKO tax reduces the inflationary burden by burning tokens and using existing supply to reward emissions the community!
The tax directly benefits NEKO holders in two ways: rewards and deflationary burning.
2.5% (half) of the NEKO tax is burned; creating a highly deflationary mechanic that reduces token supply. Supply decrease, NEKO pampu!
The remaining 2.5% NEKO tax is deposited into the Fortune Factory where it is rewarded to staked Fortune Cookies (COOKIE). Users must bake their NEKO into COOKIE via the Fortune Factory to earn the NEKO taxes.