Taxation System : Overview

With understanding developed so far from CAPA Defi Essence section, hopefully you will be expecting that the coded laws (DeFi protocol) of CAPA Meme Nation will involve mechanisms to enforce the tax system, penalties for non-compliance, and the decentralized finance (DeFi) elements related to token burning, reward distribution, and essential activities funding.

Key activities and features inside CAPA Defi Protocol :

Regular Tax Collection: CAPA meme nation has a systematic and regular tax collection mechanism. Every citizen is required to pay taxes at specific intervals.

Minimum Tax Collection Requirement: To ensure active participation, citizens need to transact a minimum value of their tokens (10% of CAPA) in one or more transactions within a 15-day period, resulting in a minimum tax collection of 0.6% of their total tokens every 15 days.

Activity Clock and Penalties: Citizens are monitored through an activity clock, which resets when the minimum transaction requirement is met. Non-compliance results in penalties, starting at 10% of total tokens and increasing for successive violations.

Increasing Penalties for Inactivity: Inactivity penalties escalate for repeated violations, encouraging citizens to remain active. Penalties can reach higher percentages (15%, 25%, 40%) for continued inactivity.

Tax Collection Frequency: The wallet resets for each user every 15 days, prompting them to pay taxes regularly. This ensures a consistent flow of resources into the meme nation.

Tax Usage: Threefold Allocation: The collected tax is strategically divided into three segments: Hype Deflationary Burn, Rewarding with $CAKE tokens, and Funding Essential Activities.

Hype Deflationary Burn: One-third of the tax is allocated to token burning, reducing the token supply and introducing a deflationary aspect to the meme nation's economy.

$CAKE Rewards: Another third of the tax is converted into $CAKE tokens, forming a rewarding pool. These tokens are distributed to loyal meme nation participants over a defined period.

Funding Essential Activities: The final third of the tax goes into the CAPA Treasury, earmarked for essential activities such as liquidity boosts and strategic marketing, fostering growth and visibility. This taxation system is designed to encourage citizen activity, ensure regular tax collection, and strategically allocate resources for the sustainability and prosperity of the meme nation.