Explanation & Formula

The Decay Tax incentivizes long-term holding by reducing the tax rate over time.

Parameters:

  • Initial High Tax Rate (%): Highest tax rate immediately after purchasing tokens.

  • Tax Reduction Tiers: Clearly defined periods over which the tax progressively decreases.

  • Minimum Tax Rate (%): Lowest possible tax rate for long-term holders.

  • Holding Period (in days): Duration the tokens have been held.

Formula:

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%

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