Inactivity Tax
This feature ensures continued deflation and volume
Last updated
This feature ensures continued deflation and volume
Last updated
NOTE: The current Inactivity Tax implementation is the result of passed community vote proposals CMP-2022/2, CMP-2022/3, and MCP-2023/5.
The Inactivity Tax adds a total 30% penalty on all inactive wallets. A wallet becomes/is deemed inactive when no eligible MONSTA transaction (>5.01%) was performed within 50 calendar days. See Wallet Reset
15% of the Inactivity Tax is burned
15% is used to buy non-correlated assets (e.g. BNB) for the community-owned asset vaults
5% of the total amount added to the vault is used to buy CAKE for the Eternal Cake Lottery
The Inactivity Tax can be performed by anyone who sees the opportunity via the dashboard. A reward (2.5% of the inactive wallet's MONSTA balance) is minted and sent to the Diamond Claw Elite NFT reward pool
The inactivty tax function plays a critical role in preventing protocol stagnation, eliminating issues resulting for example, from lost/forgotten wallets. A core component of the original MONSTA whitepaper, the inactivity tax originated as the "Auto-cash out" function and was later optimized/updated through the course of the first cycle to become iTax. Avoid iTax penalties by performing a transaction of at least 5.01% of your MONSTA balance, or simply utilize the wallet reset function in the dAPP.
