What is the role of the tax mechanism in LynkCoDAO?
In the LynkCoDAO ecosystem, the taxation mechanism is a core economic adjustment tool designed to maintain token value stability and support the ecosystem’s sustainable growth. The platform collects a certain percentage of fees from specific on-chain activities, such as transactions, staking releases, and liquidity operations. These tax revenues are automatically allocated for multiple purposes:
LNK Buyback and Burn — Reduces market circulation, creating long-term deflationary pressure to support LNK’s price.
USO Reserve Pool Replenishment — Increases the security and risk resistance of the stablecoin reserves, providing protection against extreme market volatility.
Reward Pool Feedback and Community Incentives — Allocates part of the tax revenue to the reward pool to incentivize governance members and ecosystem builders with high activity and outstanding contributions.
Through this taxation mechanism, LynkCoDAO not only ensures fair revenue distribution among ecosystem participants but also secures long-term token value support and a sustainable funding source for ecosystem operations.
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