# 8.2 Taxation System

**1. Self-Sustaining Economic System**\
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A self-sustaining economic loop is built through a 30% NFT transaction tax: This model redistributes value to enable a positive cycle of "ecosystem feedback – user growth – technological advancement," fostering a win-win environment for all participants and driving long-term ecosystem value growth.

**1.1 Tax Allocation (Sustainable Economic Model)**

<table><thead><tr><th width="238.875">Usage</th><th width="104.39453125">Proportion</th><th>Description</th></tr></thead><tbody><tr><td><strong>Token Deflation</strong></td><td>10%</td><td><em>5% Token burn + 5% NFT buyback and burn to enhance scarcity and economic balance</em></td></tr><tr><td><strong>In-Game Prize Pool</strong></td><td>50%</td><td><em>Boost activity in ranked ladder, tournaments, PVE, guilds, and other game modes</em></td></tr><tr><td><strong>Developer Ecosystem Fund</strong></td><td>20%</td><td><em>Product iteration and ecosystem expansion to drive a Web3 gaming payment protocol revolution</em></td></tr><tr><td><strong>ServerFi Node Rewards</strong></td><td>10%</td><td><em>Incentivize decentralized server maintainers</em></td></tr><tr><td><strong>Community Treasury (DAO Governance)</strong></td><td>10%</td><td><em>Marketing campaigns, sponsorships, airdrops, etc</em></td></tr></tbody></table>

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**2. Dynamic Tax Rate Mechanism**\
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A dynamic tax rate mechanism is adopted to incentivize and regulate the ecosystem. This design uses differentiated tax rates to encourage guild development and competitive achievements, protect early player rights, and balance market liquidity—ultimately establishing a "high-activity, low-friction, and sustainable" trading ecosystem. All tax revenue is redistributed to key parts of the ecosystem according to predefined ratios, creating a closed-loop of secondary value.

**2.1 Tiered Transaction Tax Rates**\\

<table data-header-hidden><thead><tr><th width="326.171875"></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Type</strong></td><td><strong>Tax Rate</strong></td><td><strong>Validity Period</strong><br></td></tr><tr><td><strong>Regular Transactions</strong></td><td>30%</td><td>-</td></tr><tr><td><strong>Guild Internal Transactions</strong></td><td>25%～30%</td><td>-</td></tr><tr><td><strong>Competitive Incentives</strong></td><td></td><td></td></tr><tr><td><strong>Top 3 in Tournament Weekly Matches</strong></td><td>20%</td><td>7 Days</td></tr><tr><td><strong>Top 3 in Ladder Rankings</strong></td><td>20%</td><td>15 Days</td></tr><tr><td><strong>Special Scenarios</strong></td><td></td><td></td></tr><tr><td><strong>Silver Age Player Transactions</strong></td><td>28%</td><td>Ongoing</td></tr><tr><td><strong>Gold Age Player Transactions</strong></td><td>26%</td><td>Ongoing</td></tr></tbody></table>
