Why The Axion Sell Tax Is Important
And How A Buy-Tax, Could Further Strengthen The Axion Staking Ecosystem
There has been a lot of discussion on Discord and within the Axion Taskforce regarding the recent sell-tax added to $AXN token sales on SushiSwap with even some suggesting we consider, a buy-tax. Let’s take a look at these two principles and explore how, working together, they could bring additional value and substantial strength to the Axion Staking Ecosystem and Token Launchpad.
Axion is a staking token with approximately 75% of all outstanding tokens staked, with a notable portion of them staked for 15 years; a particularly powerful statement in the world of cryptocurrency. By staking and holding Axion long-term, investors not only earn an 8% annual return, but they also benefit from dividends that come in the form of wrapped bitcoin and now additional Axion tokens as a result of the new sell-tax.
Driving Investors To Stake Their Tokens Long-Term
There are several aspects that make Axion unique, among them, are the Axion Accelerator and Collider which make it possible for investors to purchase and stake their tokens in one simple transaction at a discount, while also generating a unique Particle NFT for the stakeholder in the process. (You can read more about Particle NFTs here.) Additionally, if you own one of our rare Diamond NFTs, currently available for purchase from private owners on Opensea, you will also enjoy an additional 5% discount on your investment. The Diamond NFT is part of the Axion NFT Collection.
For all intents and purposes, the Axion Accelerator and Staking Portal are at the moment, the heart and soul of the Axion ecosystem and this is where the sell-tax and potential buy-tax can play an exciting and critical role.
The Purpose Of The Sell-Tax
This is rather straightforward. Encourage long-term token holding, provide additional dividends to stakeholders, and increase the amount of Axion being burned as a deflationary measure. With the current 10% sell-tax, 5% of the tax is sent to the burn wallet where at the time of writing this, almost 40 Billion Axion has been burned, and the other 5% is distributed to current stakeholders. The goal here is to incentivize long-term holding.
The Purpose of A Buy-Tax
This could even be more essential than the sell-tax. It’s important to note that both the sell-tax and buy-tax are only applied to token transactions on the open market, (SushiSwap,) not from within the Axion Accelerator where you can purchase Axion at a discount.
Where the sell-tax is divided up between the burn wallet and Axion stakeholders, a buy-tax could be used to start building the Axion Treasury as part of future Defi 3.0 protocols, including an OTC Pool. Revenue from the buy-tax could also be used to cover some of the day-to-day operating expenses, support marketing, or any combination of the above.
As the team behind Axion moves forward, one crucial focus is driving every decision being evaluated and executed. — How can we better support and encourage the continued staking and re-staking of the Axion token? What additional benefits can we provide to the community? How can we deliver additional revenue streams? Will the change provide sustainability?
This is why I have come to support the idea of the sell-tax and the potential for a buy-tax. I can honestly say, my initial reaction was that of concern. The potential negative impact the notion of ‘taxes’ brings, is significant. However, as I have researched this idea and evaluated the possible benefits, I have become more open to the potential advantages taxes can have on a project like Axion. One only needs to look at SPHERE to see how a buy and sell tax can impact a project. SPHERE has a 13% buy-tax and a 20% sell-tax. Much more aggressive than anything the Axion Taskforce has considered so far.
What are your thoughts? Do YOU think a buy tax on SushiSwap would make a difference? If so, or if not, be sure to share your thoughts and comments below.
Submitted By James McFadden — a.k.a Metal on Discord
A member of the Axion Advisory Council