Tax System on Uniswap LP

The tax system within Friendchips serves as a mechanism to support the ecosystem and its growth via rewards to stakers, adding to liquidity and treasury and funding the dev team.

There is a 6% buy/sell transaction tax on the Uniswap LP. The funds from the tax will be used to:

• 2% - paid to BFF stakers as rewards

• 1% - added to LP to deepen liquidity

• 1.5% - bridged to BASE to buy more Friend Tech Keys

• 1.5% - paid to Dev team

Users can avoid the 6% buy tax on the Uniswap LP by bonding ETH in our dApp in return for minting discounted FRIENDCHIPS, vested over a time period set by the user.

We are currently proposing to reduce the Uniswap tax to 4%. The funds from the tax would be used for:

• 0% LP (as we have deep liquidity)

• 1.5% staking returns

• 1.5% Key buys

• 1% Team

While an overall percentage reduction, we think this will actually increase the total tax collected. The Team would be taking the largest % reduction in tax share (ignoring the LP) and 100% of taxes will be used for Key acquisition for the next few days as previously mentioned.