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Burn / Sell Tax
After taking inspiration from other forks out there, we have settled on an adjustable sell/burn tax when selling CZbomb/CZbnb/CZemp/CZbusd under their respective pegs. These taxes are calculated by the boardroom TWAP of each token pair, if the TWAP is under 1.00, the Burn / Sell tax activates. Bear in mind, this also applies to transfers of tokens. This system has been added for a couple of main reasons, let's explore them below!
Firstly, this puts emphasis on the best way to take profits from the system, via selling CZshares! In an ideal world, we want to limit sells on the main tokens CZbomb/CZbnb/CZbusd and CZemp to maintain peg and protocol health. This will keep these tokens above peg long term, creating a very healthy protocol with a high value share price! For strategies that include this, please see the Strategies / Profit Taking section!
Secondly, by adding a fee to sells under peg, this encourages users to wait until over peg so that they can redeem the full $ amount their tokens are worth! These fees are completely adjustable and will most likely be altered (lowered) in the future. Currently, there is a 12.5% burn and 12.5% sell fee sent to the treasury. These funds will be used to insure the protocol by purchasing tokens under peg or via burns. Other options for these sell fees also exist, such as paying for marketing in the native tokens.
This method has been proven to work in other forks and we see it as a key component to long term sustainability!
In this instance, only the token below peg has the burn/sell fee, the other two will be able to be sold with no fees!