💸Taxes & Fees

Meme Royale implements various taxes and fees to incentivize positive behavior and create exciting gameplay dynamics. Understanding these is crucial for effective trading.

TLDR:

• Standard trading fee: 1% on buys and sells

• In-battle "Chicken Tax": Dynamic, minimum 10% on sells

• Post-battle "Dirty Dump Tax": Starts high, decays over time

• Taxes are used to deter dumping and to benefit remaining holders

In-Battle "Chicken" Tax 🐔

Purpose: To discourage selling during battles and reward those who hold strong.

• Applied to sells during a battle

• Dynamically calculated to nullify gains from the battle pump

• Minimum 10% tax, even if the coin's price has dropped

• Proceeds accrue in a pot during the battle

• Battle pot is used for a buy-and-burn after settlement, benefiting those who remained in the battle

Post-Battle "Dirty Dump" Tax 💩

Purpose: To prevent immediate dumps after battles and distribute gains more evenly among holders.

• Applied after a battle to discourage immediate dumping

• Starts high and decays over time (1-60 minutes, based on price elevation)

• Proceeds used for immediate offsetting buy-and-burn

Tax Calculations

• In-battle tax nullifies gains from the battle pump

• Post-battle tax starts by nullifying a high percentage of gains and decreases linearly

• If both in-battle and post-battle taxes apply, the higher one is used

Interested in learning more about how taxes work on Meme Royale, or the underlying motivations? You can read the thread from Meme Royale's evolutionary biologist, Darwin: https://x.com/Darwinianmeme/status/1824454705088499746

Trading Fees

• 1% fee on both buys and sell trades

• This fee is used for protocol maintenance and development