Tax Structure and Sustainability

As part of our long-term strategy, we implement two revenue mechanisms designed to ensure the sustainability of staking rewards and the overall health of the MoonCat ecosystem. These approaches maintain a robust rewards pool, drive continuous growth, and incentivize long-term participation.

Revenue Mechanisms

1. Transfer Tax (1%)

A 1% tax on MCT transfers and sales is collected in native MCT tokens and sent to the treasury. This creates a sustainable revenue stream without adding sell pressure.

Tax-Exempt Transactions:

• All protocol contracts (staking, governance, treasury)

• Approved DEX routers

2. LP Optimization Fees (1-10% of profits)

Our AI-enhanced liquidity optimization system charges a profit-only fee set by governance (initially 3%). This ensures users only pay when they profit, creating perfect alignment between user success and protocol revenue.

Fee Allocation (governance controlled):

• Buyback MCT

• Operations & development

Sustainability Model

This dual revenue approach ensures:

• Continuous funding for staking rewards

• Resources for ongoing development

• Treasury growth for strategic initiatives

• Buyback pressure supporting token value

By collecting fees only on profits and transfers (not deposits), we maintain user-friendly economics while building a self-sustaining ecosystem. All fee parameters can be adjusted through governance to respond to market conditions and community needs.