⚖️Taxes

Fee Structure:

Taxes are necessary in order to fund the Shezmu Treasury and protocol longevity. The goal when crafting the tax system was to minimize unnecessary taxation while using common sense to determine which taxes are crucial. Starting off, there will never be a Buy Tax. This would contrast the best interest of the community which is to incentivize buying to the highest extent possible. It will never be the goal to penalize adopters of the Protocol.

There will be a 6% sell tax present at launch. This tax is not fixed in nature. The sell tax can be deviated at the discretion of the Shezmu Treasury as they determine necessary considering contemporary circumstances at the time. A guarantee though is the variability will always leave the sell tax at a maximum of 6%, meaning it can be lowered but never raised above said limit. The Treasury’s goal is to gradually lower the sell tax over time as conditions allow. The higher initial sell tax incentivizes longevity in community building and participation.

The initial 6% sell tax consists of the three following subcategories:

The justification for each tax subcategory is explained is as follows:

Dedicated to community development, Shezmu allocates a percentage of the sales tax to fortify liquidity in the pool, thus cultivating a stable trading environment. Additionally, a portion of the sales tax is distributed in USDC to Guardians, providing them with an enticing incentive for their continued commitment to the network. To heighten scarcity and augment long-term value, another portion of the sales tax is designated for buyback and burn mechanisms. Moreover, strategic marketing initiatives are financed through a separate allocation, aimed at driving awareness and engaging new participants within the Shezmu ecosystem.