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Each taxed MBIRD will automatically be added to the liquidity pool (2% per txn). This acts as a three-fold beneficial implementation for holders.
- First, the contract sucks up tokens from the volume generated and adds them to the LP creating a solid price floor.
- Second, the taxation penalty acts as an arbitrage-resistant mechanism that secures the volume of MoonBird as a reward for the holders.
- Finally, this system would be essential in the final stage of the token emission, when there are no more MBIRD to mine, and therefore no more incentive for users to provide liquidity themselves. The overall volume generated until that time would gather more than enough liquidity to maintain a healthy market.
The goal here is to prevent the larger dips from happening when users decide to sell their tokens.