📈NOX Tax Strategy

From Extraction to Empowerment: The NOX Tax Strategy

Key to sustaining this model is the innovative use of a 5% sell and transfer tax, often utilized in the crypto space merely as a mechanism for value extraction. In the case of NOX, these taxes are repurposed to fuel the ecosystem sustainably, ensuring that operational costs, development, and marketing are funded by activities outside the ecosystem, such as profit-taking or exits, rather than penalizing long-term holders.

When NOX is traded as a NOX-ETH pair on the Arbitrum chain, the 5% sell tax is captured in ETH. This design ensures that Equinox does not have to liquidate its NOX holdings to cover operational costs, thereby safeguarding the token's value from potential devaluation due to project sales.

The 5% transfer tax serves more as a safeguard, ensuring the integrity and effectiveness of the sell tax. As it is inherently captured in NOX due to the nature of the transaction, all internal transfers within the ecosystem (such as staking, or making deposits and withdrawals in Nox Vegas) are exempt from it. This exemption is crucial, as with limited need for token transfer outside of the ecosystem, it minimizes the frequency of taxable NOX transfers. Using profits generated by the platform to exchange any NOX collected through transfer tax to ETH, ultimately mitigates potential selling pressure from the project, aligning with the goal of reducing selling pressure.