Inactivity Tax

This feature ensures continued deflation and volume

NOTE: The current Inactivity Tax implementation is the result of passed community vote proposals CMP-2022/2, CMP-2022/3, and MCP-2023/5.

• The Inactivity Tax adds a total 30% penalty on all inactive wallets. A wallet becomes/is deemed inactive when no eligible MONSTA transaction (>5.01%) was performed within 50 calendar days. See Wallet Reset

• 15% of the Inactivity Tax is burned

• 15% is used to buy non-correlated assets (e.g. BNB) for the community-owned asset vaults

• 5% of the total amount added to the vault is used to buy CAKE for the Eternal Cake Lottery

• The Inactivity Tax can be performed by anyone who sees the opportunity via the dashboard. A reward (2.5% of the inactive wallet's MONSTA balance) is minted and sent to the Diamond Claw Elite NFT reward pool

The inactivty tax function plays a critical role in preventing protocol stagnation, eliminating issues resulting for example, from lost/forgotten wallets. A core component of the original MONSTA whitepaper, the inactivity tax originated as the "Auto-cash out" function and was later optimized/updated through the course of the first cycle to become iTax. Avoid iTax penalties by performing a transaction of at least 5.01% of your MONSTA balance, or simply utilize the wallet reset function in the dAPP.