Tokenomics

The Buy/Sell Tax (4.8%) is split into 4 parts to meet the project’s goals. The “Yield” portion will be used to provide a stream of income to supporters. The “Social” & “Expense” amounts are to be used to support communication, development, hardware and software requirements. The “Flex” portion will be used for various efforts to include burning LUNC and/or USTC, Airdrops, BASE .

As the LUNC liquidity grows the gap between the Buy and Sell prices will naturally widen. This occurs because even though the tax percentages remain static, the percentage is taken from a larger number.

For example, at a spot price of 100 LUNC/BASE, the buy price is 104.8 LUNC/BASE and the sell price is 95.2 LUNC/BASE. The delta is therefore 9.6 LUNC. However, when the spot price is 1000 LUNC/BASE, the buy price is 1048 LUNC/BASE and the sell price is 952 LUNC/BASE. The delta at the higher price is 96 LUNC. In order to keep the buy price within a reasonable amount of the spot price, the LBUN Project may lower the tax paid on buys so that the buy price is closer to the spot price. However, it is expected that the sell tax will remain the same in order to deter pump and dump schemes.