{% hint style="info" %}
* Simple Transfers have a 0% tax e.g. a wallet-to-wallet transfer.
* For added security, the tax rates have been hardcoded with an upper limit, ensuring they can never exceed a 10% tax.
* A further advantage of transaction taxes is their ability to minimize MEV bot frontrunning and sandwich attacks.
{% endhint %}
We acknowledge that a 5% tax may seem steep, but it plays a crucial role in bolstering the Blob ecosystem. The higher the tax, the more rewards Blob can distribute for feeding and the quicker our treasury grows. Rest assured, 100% of these taxes are utilized transparently to benefit Blob's community.
After careful consideration, we have decided that adding a taxation system is the fastest and most sustainable way to grow the DAO treasury. This solution, we believe, serves as the optimal path to accelerate the growth of our DAO treasury but the beauty of our DAO is that it evolves with its community.
As such, once our treasury becomes a revenue-generating powerhouse, we'll consider the possibility of removing this taxation system. But remember, the Blob ecosystem is rooted in democracy. The decision to alter or remove this taxation system will be determined by you - our community - through a collective vote. In this way, we ensure that BlobDAO remains a space where every voice matters, every idea counts, and every step forward is a shared triumph.
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