goTAO Documentation ττ
  • Introduction
    • Abstract
    • Overview of goTAO
    • goTAO's Mission and Vision
    • The Foundation
      • What is Bittensor (TAO)?
      • How Bittensor Integrates with goTAO
      • Bittensor’s Role in the Future of AI-based Blockchain Systems
    • goTAO Architecture
  • Tutorial
    • GoTAO Stake Tutorial
    • GoTAO Testnet Tutorial
      • Faucet
      • Transfer
      • Check history
  • KEY FEATURES
    • Stake
      • How It Works
      • Staking Rewards
    • Restake
      • How It Works
      • Restaking Rewards
  • $GAO Token
    • $GAO Overview
    • Supply and Distribution
    • Tax Structure
  • Community
    • Follow us on X
    • Join Us on Telegram
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  1. $GAO Token

Tax Structure

PreviousSupply and Distribution

Last updated 6 months ago

The tax structure of goTAO is strategically designed to support both the liquidity of the platform and its integration with Bittensor’s decentralized ecosystem. Here’s a breakdown of how the tax system operates:

  • Buy Transactions: 3% Tax

  • Sell Transactions: 4% Tax

Tax Distribution

The revenue generated from these taxes is allocated to support two key areas of the goTAO and Bittensor ecosystems:

  • 20% of the transaction fees are directed towards the liquidity pool, enhancing liquidity within the staking system. This ensures smoother transactions, better redemption rates for stETH, and greater stability in the pool, which is vital for maintaining the seamless operation of the staking and restaking mechanisms.

  • 80% of the transaction fees are strategically used to purchase wTAO (wrapped TAO). This allocation is a critical component of goTAO's mission to become a recognized subnet of Bittensor. By continuously acquiring wTAO, goTAO not only increases its Total Value Locked (TVL) but also strengthens its position within the Bittensor network. This process helps goTAO gradually meet the governance and staking requirements necessary to operate as a Bittensor subnet, further integrating it into the ecosystem’s decentralized AI infrastructure. This alignment enhances goTAO’s influence within the Bittensor protocol, allowing it to contribute more directly to the network's governance and decentralized AI economy​.

ETH/stETH