Tax Mechanism
The Warden Tax system is a safeguard to help the protocol's growth. It is dynamic and adjusts based on the BASED peg to Ethereum. As BASED peg fluctuates, so does the tax rate – a mechanism we've implemented to help the maintain price closer to peg. It is flexible and can be updated with governance.
The Warden Tax system will be applied to SELLS only! Creating LP and transfers will not be taxed as long you use our front-end (opens in a new tab)! The graph and table below provides a clear breakdown of the tax rates at various BASED peg levels:
Graph and Table
| Tax Tiers | Tax Rates | Taxes per $100 |
|---|---|---|
| 0.00 | 15.00% | $15.00 |
| 0.80 | 30.00% | $30.00 |
| 0.86 | 26.92% | $26.92 |
| 0.88 | 25.38% | $25.38 |
| 0.90 | 23.84% | $23.84 |
| 0.92 | 22.31% | $22.31 |
| 0.94 | 20.77% | $20.77 |
| 0.96 | 19.23% | $19.23 |
| 0.97 | 17.69% | $17.69 |
| 0.98 | 16.15% | $16.15 |
| 0.99 | 14.62% | $14.62 |
| 0.998 | 7.50% | $7.50 |
| 1.00 | 5.00% | $5.00 |
| 1.0003 | 3.00% | $3.00 |
Always be mindful of the current BASED peg before executing transactions, as it directly influences the slippage you'll encounter.