Example Scenario

Tax rates based on holding periods (example):

Holding Duration	Tax Rate (%)
0–7 days	20%
8–14 days	15%
15–30 days	10%
31+ days	5%

• Sarah purchases 5,000 tokens.

• She decides to sell 2,000 tokens after:

  • 5 days: Tax = 20% → 400 tokens deducted.

  • 10 days: Tax = 15% → 300 tokens deducted.

  • 20 days: Tax = 10% → 200 tokens deducted.

  • 40 days: Tax = 5% → 100 tokens deducted.

Thus, Sarah is incentivized to hold longer to significantly reduce her tax burden.

Example Scenario for Time Reset on Transfer:

• User A holds tokens for 8 days, transfers tokens to User B.

• User B sells after holding for 1 day; User B pays the highest bracket (20%) as the holding period resets upon transfer.