MagmaCake Finance
  • Roadmap
  • Polygon details
    • Presale
    • Features
    • How To Connect To Polygon Network
    • Pool ID
  • What makes us different?
    • Why Are We Different?
    • Smart Transfer Tax
    • Higher APY, Accurate APY ($MAGMA Staking)
    • Auto Renewal of Harvest Blocks
  • MultiChain
    • Binance Smart Chain Network Contracts
    • Polygon Network Contracts
  • BSC Launch Details
    • Presale & Launch
    • Partnership With SeedMoney Finance
  • Features
    • Harvest Lock
    • Auto Emission Reduction
    • BUSD House
    • MAGMA Buyback Protocol
    • Anti Whale
    • Layered Farming
    • Auto Liquidity
    • Multipliers
  • Safety
    • Audit & Reviews
    • Emergency Withdrawal
  • Links
    • FAQ Sites
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  1. What makes us different?

Smart Transfer Tax

Our $MAGMA token has an 8% transfer tax, but it does NOT apply for staking, unstaking and harvesting $MAGMA tokens on our farm. The main focus of yield farms should be to retain the price of the native token, and the transfer tax does help in providing deflationary pressure on the native token.

However, does it make sense for native holders to pay 8% to stake, then another 8% to unstake? No, right? But alas, for normal yield farms, the native farmers actually pay more than the non-native farmers to farm (2 * transfer tax % VS 4%). This is EXACTLY why we chose to retain the transfer tax, but specifically exclude the staking, unstaking and harvesting actions from the transfer tax, so that the native farmers will not be unfairly penalized for farming, yet the deflationary pressure on our $MAGMA tokens is still kept through the transfer tax only on buy and sell orders on PCS!

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Last updated 3 years ago

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