TAX System & Whale Tax

wallet transferfdsThe tax system of the Zombie Network is designed as a means not only to raise funds for participants to receive 1% of interest per day but also to pay rewards according to the recommender reward system. The reason why the Zombie Network runs the TAX systems is to pay the interest and rewards, as well as to induce the maximization of profits by restraining reckless frequent transactions through tax charges for withdrawing and selling BLOOD tokens.

All transactions related to BLOOD tokens on the Zombie Network are subject to the following transaction tax.

Transaction	Tax Rate	Remark
Buy	10%	Tax is exempted when purchasing from the Zombie Network website
Deposit	10%
Compound	5%	To encourage Compound (redeposit) activity
Claim	10%
Sell	10%
Airdrop	10%
Wallet transfer	10%
Liquidity supply	10%	When using other Dex
UFO staking reward	10%	When using UFO swap

The tax system of the Zombie Network has a unique regulation called Whale Tax. The Whale Tax is a kind of possession tax that is imposed on participants who hold a large amount of BLOOD tokens thanks to the accumulated interest profits. This is to increase the sustainability of the network by limiting the influence that a small number of participants with a large amount of BLOOD tokens can have on the market, and by imposing additional taxes on the excess profits obtained through the Zombie Network. The accumulated interest profit that the participants of the Zombie Network receive is equal to the sum of Available (disposable interest amount) and Claimed (cumulative withdrawal amount) displayed on the Staking menu page.

When the amount of BLOOD token received as accumulated interest profit becomes 1% or more of the total token issuance of the project, the Whale Tax is imposed on it. When a participant is subject to the Whale Tax, daily interest profit will be paid after deducting the amount of Whale Tax from 5% to 50%. And when the available amount remains, it will also be deducted as much as the amount of the Whale Tax rate. The details of Whale Tax according to the accumulated interest profit are as follows.

Cumulative interest profit relative to the total issued volume	Whale Tax
1% or more	5%
2% or more	10%
3% or more	15%
4% or more	20%
5% or more	25%
6% or more	30%
7% or more	35%
8% or more	40%
9% or more	45%
10% or more	50%

When a participant who maximizes profits up to 100,000 withdrawable tokens (Max Payout) in the Zombie Network sells all withdrawable BLOOD tokens, approximately 85% of the total sales volume can be paid only with the tax (including general tax and Whale Tax) that the participant pays. The Zombie Network operates the tax that all participants pay in a single tax pool and manages the payment of interest and rewards in an integrated manner, so the more participants, the more dispersed the withdrawal timing. Namely, the Tax Pool of the Zombie Network will act as payment reserves with a sufficient cash reserve ratio of up to 85%. For reference, the cash reserve ratio of general banks is only 7% to 10%. The Zombie Network utilizes this tax system, so it is possible to continuously operate it.