In the hustle and bustle of the main chat, one aspect of DefiSports has been questioned multiple times over and remains misunderstood within the community to this day. It is regarding the tax, lock function, and how tokenomics work in general. To clarify, we are writing this article to elaborate on these concepts and to demystify them.
To start with, the tokenomics is straightforward. 40% of the total supply is allocated to the circulating supply for the public to buy and sell. 4.9% is allocated to the gaming pool in which investors can stake their coins for a predetermined amount of time. The rest of the coins will be allocated to the team, ambassadors, associations, the BitcoinMan, and advisors who will receive 15.1%, 20%, 10%, 5%, and 5% respectively.
Amongst these allocations, except for the Circulating supply and gaming pool, all wallets are locked for a period of 3–5 years. This lock function also has a feature called vesting period that has a scheduled release on a yearly basis. For example, if a team member has ownership of 2% of the supply, at the end of each year he will be allowed to access 0.4%. As a result, by the end of 5 years, he will be eligible for the full 2% of his coins. This lock function is hardcoded and can be verified by reading the contract on the bscscan. Moreover, these wallets aren’t just hardcoded but each member has contractually agreed to the scheduled release of his or her tokens with DefiSports Holdings LLC.
Finally, the most frequent inquiry about DefiSports is about the tax implementation. The buy and sell taxes are capped at 15% which has agitated some investors. However, it is important to understand why we have calibrated it as such. Once a transaction has been placed, the tax gets rerouted to the operational wallet which has a public tag on BSC. The operational wallet fulfills multiple purposes including contributing to the development of the hybrid platform, marketing, signing more athletes, and paying for other operational expenses.
Having a tax function in place allows DefiSports to continue smooth and effective operations. Although, it is understood by the team that having to buy and sell with a 15% tax applied to the transaction is short-term. This is why the tax will be reduced after launching the hybrid platform and eventually shrink down to 1% by the start of 2022. This will benefit long-term holders as they will be able to benefit from a lower tax surcharge. It also aligns with our goals as it encourages investors who understand the vision of the project to hold long-term.
The development team is somewhat 35% done with the platform with all APIs being integrated and being tested multiple times on a daily basis.
How do we conduct the operations on the backend, we use GitHub for daily communication on tech development.
Hope this article improves the understanding between investors and the project’s vision and to work side by side to build a successful platform for all users to benefit and utilize the platform for multiple purposes.
Thank you for reading.