6. Importance of Tax

The Importance of Tax in the Income Layer Ecosystem

The Income Layer token ($INCOME) has been meticulously designed with a sustainable economic model that incorporates a trading tax aligned with global personal income tax averages, ensuring fairness and sustainability across the ecosystem. This tax is essential for maintaining the delicate balance of the ecosystem, referred to as Economic Harmony (EH). It plays a critical role in promoting deflation, growing liquidity pools, ensuring operational efficiency, and stabilizing the market.

The tax system has been carefully engineered to benefit all participants, from small investors to large stakeholders, without giving preference or priority to any group. By creating a fair and balanced economic structure, the Income Layer ecosystem ensures that everyone who engages with it has the opportunity to participate in its growth and success.

Breakdown of the 10% Personal Universal Income Tax on Traded $INCOME

Liquidity (4%) This portion of the tax is directed toward the liquidity pools, ensuring fluidity, accessibility, and trust within the market. By enhancing liquidity, the system guarantees that transactions can be executed efficiently, reducing slippage and volatility. It also provides a stable foundation for the ongoing growth of the ecosystem, instilling confidence among participants and potential investors.

Burning (2%) To create a deflationary effect, 2% of every transaction is permanently burned. This process reduces the overall supply of $INCOME tokens, which helps balance the economy by mitigating inflationary pressures. As the total supply decreases over time, token scarcity increases, potentially raising the token's value, benefiting long-term holders and ensuring the token remains valuable.

Universal Basic Income (2%) Another 2% is allocated toward Universal Basic Income (UBI) distribution through the ecosystem’s income nodes. This ensures that a steady stream of $INCOME tokens is distributed to participants, providing a reliable income source while maintaining economic balance. The UBI system incentivizes node operation and participation, fostering a healthy, engaged community within the ecosystem.

Marketing (1%) A portion of the tax, 1%, is dedicated to marketing efforts. This ensures the ecosystem continues to grow by attracting new participants, increasing visibility, and driving broader adoption of the $INCOME token. Marketing funds help establish a constant flow of economic activity, further supporting liquidity and ensuring the ecosystem's vitality.

Treasury (1%) The final 1% is allocated to the treasury, which is responsible for governance, operational support, and ecosystem sustainability. These funds are used to maintain the system's functionality, support ongoing development, and ensure that governance decisions are well-informed and executed efficiently. The treasury ensures that the ecosystem remains resilient and adaptable to future challenges.

Tax as a Mechanism for Economic Stability

The implementation of this 10% tax is vital to the long-term sustainability and success of the Income Layer ecosystem. By ensuring a steady stream of liquidity, reducing the circulating supply through token burning, and maintaining a balanced distribution of UBI, the tax system acts as a stabilizing force in the market. It also provides the necessary resources for governance, marketing, and operational efficiency, all of which contribute to the growth and strength of the ecosystem.

This tokenized economic model, supported by a fair global tax average, provides an inclusive structure that benefits all participants while ensuring the ecosystem remains balanced and sustainable over time.

Source for global average tax rate: Trading Economics