Tax Structure
BUY/SELL Fee: 5%
1. System Treasury - 3%
The 3% tax levied on $ZAO-related transactions is a strategic financial mechanism designed to foster the growth, sustainability, and continuous improvement of the zkTAO ecosystem. This includes:
Marketing
The marketing fund is allocated to a variety of promotional and educational activities aimed at increasing the visibility of zkTAO and engaging the community more deeply:
Tracking Services: Investment in analytics and tracking services to monitor and optimize marketing strategies, ensuring the best return on investment and effective reach to the target audience.
Moderators' Salary: Compensation for community moderators who play a crucial role in maintaining active and healthy community engagement, providing support, and fostering discussions across platforms.
Key Opinion Leaders (KOLs): Collaborating with influencers and thought leaders in the blockchain space to drive awareness and credibility for zkTAO through social media promotion, webinars, and live events.
Articles and Educational Content: Creation of high-quality, informative content to educate the community and the wider public about zkTAO's features, updates, and blockchain technology in general, enhancing user knowledge and engagement.
Development
This portion of the tax goes directly into the technical and operational advancements of the zkTAO platform:
Server Costs: Covering the expenses associated with hosting services, cloud computing, and other infrastructure needs essential for maintaining a robust and reliable blockchain network.
Validator AI Training: Investing in the development and training of AI validators to improve the efficiency, security, and scalability of transaction validations within the zkTAO ecosystem.
Product Enhancement: Continuous improvement of existing features, user interfaces, and overall system performance to enhance the user experience and attract more participants to the platform.
Ecosystem Expansion: Initiatives to grow the zkTAO ecosystem, including integration with other platforms, development of new applications, and exploration of novel blockchain technologies.
Finance
Funds allocated to financial strategies aim to enhance the token's market performance and provide value back to the community:
Buyback & Burn: Periodically purchasing ZAO tokens from the market and removing them from circulation to reduce the total supply, potentially stabilizing or increasing the token's value over time.
Central Exchange (CEX) Listings: Costs associated with listing ZAO on prominent cryptocurrency exchanges to improve liquidity, trading volume, and accessibility for a broader audience.
Airdrops to CEX Communities: Conducting airdrops to communities on centralized exchanges as a promotional activity to increase token distribution, raise awareness, and incentivize new users to join the zkTAO ecosystem.
Start-up
Investment in emerging projects within the zkTAO environment is critical for ecosystem innovation and diversity:
Project Identification and Support: Identifying promising startup projects that align with zkTAO's vision and offering financial support, mentorship, and technical resources to help them grow.
Community and Ecosystem Integration: Facilitating the integration of successful startup projects into the zkTAO ecosystem, creating synergies and expanding the platform's capabilities, thereby offering new opportunities and value to the community.
2. Ecosystem Reward
The remaining 2% tax fee collected is meticulously allocated to directly benefit and incentivize the community, stakeholders, and support the Validator ID infrastructure.
Stakeholders
Funds are also allocated to reward stakeholders who invest their $ZAO tokens and trust in the zkTAO ecosystem, ensuring their continued support and investment:
Staking Rewards: Enhancing the staking rewards program to provide higher yields for stakeholders, directly benefiting from the ecosystem's growth and success.
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