# Tokenomics

### Introduction

The project's tokenomics work differently to the usual token or cryptocurrency. We engineered the tokenomics to work in best combination with **the mechanics**, which can be found [here](https://baby-safemoon.gitbook.io/babysafemoon/espanol/under-the-hood/mechanics).

### Core Tax: Buy/Sell taxes are independent

Usually, transaction taxes are combined, fixed, and not changeable. Unfortunately, with unforeseen circumstances or positive opportunities for investors, it can be greatly beneficial to increase or decrease buy/sell taxes for health and stability.&#x20;

A simple step would be to make the transaction tax adjustable, however, in order to support one of our crucial core [mechanics](https://baby-safemoon.gitbook.io/babysafemoon/espanol/under-the-hood/mechanics), we decided to take this one step further and create **individual buy and sell taxes** to provide the perfect amount of flexibility needed in support of the project and our fellow astronauts (community/investors).

| **Core Buy Tax** | **Core Sell Tax** |
| :--------------: | :---------------: |
|        15%       |        15%        |

### Tax-for-purpose is a percentage of Core Tax

The amount of tax used for different purposes is a percentage based on total taxes.

In this case, a **purpose** can be for example: reflection, development, marketing, giveaways, etc.

{% hint style="info" %}
**For Example:**\
\
If the **total (buy or sell) tax is 15%**, and **tax-for-purpose** for **reflection is 50%**, effectively the reflection is **50% of 15%** which is **7.5%**. \
\
To understand the reasoning behind this, please visit the [**mechanics**](https://baby-safemoon.gitbook.io/babysafemoon/espanol/under-the-hood/mechanics) section.
{% endhint %}

Below is an overview of the **tax-for-purpose percentages (TPP)**:

| **Purpose**               | Percentage of **Core Tax** |
| ------------------------- | :------------------------: |
| **Reflection to holders** |             50%            |
| **Development**           |            13.3%           |
| **Marketing**             |             10%            |
| **Giveaways**             |            6.7%            |
| **nBNB bridge**           |             20%            |

Below is an overview of the **effective taxes** each purpose will recieve **at 15% tax:**

| **Purpose**               | **Effective Tax** at 15% |
| ------------------------- | :----------------------: |
| **Reflection to holders** |           7.5%           |
| **Development**           |            2%            |
| **Marketing**             |           1.5%           |
| **Giveaways**             |            1%            |
| **nBNB bridge**           |            3%            |

{% hint style="success" %}
By setting **tax-for-purpose** as a percentage of **core tax**, we can simply increase or decrease the core tax, and all taxes will automatically adjust.
{% endhint %}
