🏛️Fees and Taxes

➜ Fees & Taxes

The Niggaverse ecosystem involves various taxes and fees that players must consider when interacting with the platform. These taxes are designed to support the system, incentivize certain behaviors, and ensure sustainability. Below is a breakdown of the key taxes and fees in the game, including a summary table for easy reference.

1. Exit Tax

• Exit Tax is applied when $RACKS is claimed from any Nigga.

• The Exit Tax is always 3%, and it is paid directly to Hood-Nigga.

• No Exit Tax is applied if the funds are compounded instead of claimed.

2. Royalties

• Royalties are paid from lower-ranked Niggas to higher-ranked Niggas.

• Each Nigga type has a different royalty structure, and royalties are collected on a daily basis.

➜ Royalty Distribution:

• Broke-Ass-Nigga pays:

  • 5% to Fat-Nigga

  • 10% to Sheikh-Nigga

• Hood-Nigga pays:

  • 5% to Fat-Nigga

  • 10% to Sheikh-Nigga

• Fat-Nigga pays:

  • 10% to Sheikh-Nigga

• Sheikh-Nigga does not pay royalties to any other Nigga types.

3. Compounding

• When players compound their daily earnings, no taxes are applied.

• Compounding increases the XP of the Nigga, upgrading its rank and increasing its earning potential.

4. Buy and Sell Tax

• The $RACKS token, the native currency of the system, incurs a 3% fee on both buy and sell transactions.

• This 3% fee is applied to trades on exchanges and is used to support the overall ecosystem.

• Exit Tax is only applicable when $RACKS is claimed. If funds are compounded, there are no taxes.

• The Buy/Sell Tax on $RACKS helps maintain the system’s liquidity and ensures long-term stability.

➜ Fees and Taxes Summary Table

Fee Type	Amount	Paid To	Applies To
Exit Tax	3%	Hood-Nigga	When claiming $RACKS
Royalties (Broke-Ass-Nigga)	5% to Fat-Nigga, 10% to Sheikh-Nigga	Fat-Nigga, Sheikh-Nigga	Daily income from Broke-Ass-Nigga
Royalties (Hood-Nigga)	5% to Fat-Nigga, 10% to Sheikh-Nigga	Fat-Nigga, Sheikh-Nigga	Daily income from Hood-Nigga
Royalties (Fat-Nigga)	10% to Sheikh-Nigga	Sheikh-Nigga	Daily income from Fat-Nigga
Compounding	0% (no tax)	N/A	When reinvesting daily income
Buy/Sell Tax	3%	N/A	$RACKS token trades (buy/sell)