What is $TAP?

TAP Token: Tokenomics & Tax System

The TAP token is the heart of the Tapout game ecosystem. Beyond its primary utility for playing the game, TAP incorporates a transaction tax system designed to fuel various aspects of the Tapout platform and reward its participants.

Understanding the Transaction Tax

Whenever TAP tokens are transacted (e.g., bought or sold,), a 5% tax is applied to the transaction amount. This tax is automatically processed by the TAP token's smart contract.

This tax typically applies to token swaps on AMMs. Wallet to wallet transfers and interactions (tapping) in the game is exempt.

Why a Tax System?

The TAP token's tax system is designed to create a self-sustaining ecosystem:

• Incentivizes Gameplay: By directly funding the prize pool, it makes playing Tapout more attractive.

• Rewards Stakers: It provides a mechanism for Golden Carrot NFT holders to earn passive rewards by through staking.

• Supports Growth: It provides resources for the development team to continuously improve and expand the Tapout experience.

• Encourages Holding: The tax on transactions can subtly encourage users to hold their tokens for longer periods or for specific uses like playing the game or staking.

Tax Distribution (5% Total)

The 5% tax collected from each TAP token transaction is distributed as follows:

• 🎮 2% to the Game Prize Pool:

  • Purpose: This portion directly contributes to increasing the prize pool for active game rounds in Tapout.

  • Impact: More transactions mean larger potential winnings for players, making the game more exciting and rewarding.

• 🏦 2% to the Staking Vault:

  • Purpose: These taxes are allocated to the NFT staking vault.

  • Impact: This rewards users who stake their Golden Carrot NFTs, providing them with a share of the transaction taxes and encouraging long-term holding and participation in the ecosystem.

• 🛠️ 1% to the Team & Development Fund:

  • Purpose: This portion supports the ongoing development, maintenance, marketing, and operational costs of the Tapout game and platform.

  • Impact: Ensures the longevity of the project, allows for new features, bug fixes, community engagement, and overall growth of the Tapout ecosystem.

When buying or selling TAP tokens on a DEX, you may need to set an appropriate slippage tolerance to account for the tax and normal price fluctuations. A slippage of 5-12% (or as recommended by the app) might be necessary.