Transaction Taxation Framework
The Value Recycling Engine
The NOX tokenomics model is distinguished by its integrated transaction tax mechanism—a sophisticated system designed to directly convert market activity into sustainable ecosystem growth. This is not a simple fee; it is the core circulatory system of the NØNOS economy. While many tokens rely on external factors or speculative demand for value accrual, NOX embeds value creation directly into its transaction layer. Every trade actively funds liquidity, development, governance, and deflation, creating a self-reinforcing economic loop where increased usage directly translates into a stronger, more valuable network for all participants.
Foundational Design Principles
The architecture of the NOX tax framework is built upon two non-negotiable pillars:
Principle of Fairness:
The fee structure is calibrated to be meaningful enough to power the ecosystem's engines without imposing a punitive cost on users. By exempting standard wallet-to-wallet transfers, we ensure that everyday utility and participation remain frictionless. Fees are only applied to market operations (buys and sells), aligning the cost of liquidity with those who directly benefit from it.
Principle of Alignment:
Every fraction of a token collected in fees is strategically redistributed to reinforce the core pillars of the ecosystem. This ensures that the interests of traders, holders, developers, and governors are perfectly synchronized. Value extracted from trading volume is not lost; it is reinvested into mechanisms that enhance scarcity, stability, and innovation for everyone.
Base Transaction Tax Rates
The protocol employs a simple, transparent, and effective fee schedule designed to encourage holding and utility while monetizing speculation:
Buy Transactions: 2% - Applied to all purchases, ensuring new capital entering the ecosystem immediately contributes to its health.
Sell Transactions: 2% - Applied to all sales, ensuring that those exiting the system help fortify it for remaining holders.
Transfers (Wallet-to-Wallet): 0% - Exempted to promote seamless utility, such as using NOX for payments, rewards, NFT purchases, or moving between personal wallets without cost.
This structure ensures that the tax mechanism specifically targets exchange-driven volatility while leaving user-driven utility completely unaffected.
Strategic Fee Distribution Splits
The true genius of the system lies in its allocation. Collected fees are automatically split and routed to their destinations within the same transaction, creating a perfectly efficient value-transfer mechanism.
Liquidity Collector (40%): This is the largest allocation, strategically designed to create a self-funding liquidity engine. These funds are automatically routed to a dedicated contract to be paired with native currency (e.g., ETH) and injected into decentralized exchange liquidity pools. This ensures that as trading volume grows, market depth grows in lockstep, reducing slippage, increasing stability, and building a formidable barrier against volatility.
Developer Wallet (30%): This continuous funding stream provides a sustainable runway for the core development team, ensuring they are perpetually incentivized to maintain, upgrade, and innovate upon the protocol. It aligns their financial success directly with the trading activity and health of the ecosystem, guaranteeing long-term commitment beyond the initial launch phase.
DAO Treasury (20%): This allocation provides a predictable and automated revenue stream for the decentralized autonomous organization. It funds community-approved initiatives such as grants for developers, strategic partnerships, security audits, marketing campaigns, and staking rewards, empowering token holders to directly steer the ecosystem's expansion using its own generated capital.
Burn Mechanism (10%): A portion of every fee is permanently removed from circulation. This constant, deflationary pressure directly counteracts any potential sell-side pressure by systematically reducing the total supply, thereby increasing the scarcity and value accrual potential of each remaining token for all long-term holders.
This balanced, multi-vector distribution ensures that value is never monopolized but is instead strategically deployed to reinforce every critical function of the ecosystem simultaneously.
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