📦Revenue Distribution

As referenced previously, holders of TAI tokens will benefit from sustainable buybacks derived from TaiNet protocol revenue, creating a powerful value accrual mechanism. TAI holders benefit from buybacks generated from fees in the form of:

• 50% of yTAO mint fees are allocated to TAI buybacks

• 50% of yTAO redemption fees are allocated to TAI buybacks

• 50% of yTAO yield fees are allocated to TAI buybacks

This encourages longer term staking and offers heavier rewards and yield to those that stay engaged with the long-term vision of TaiNet, whilst punishing short-term opportunists looking to game the system. In addition long term yTAO users are also rewarded with a similar setup that boosts their yield vs. competition in the form of:

• 50% of yTAO mint fees are allocated to existing yTAO holders

• 50% of yTAO redemption fees are allocated to remaining yTAOI holders

• 50% of yTAO yield fees are allocated to TAO/yTAO liquidity providers

In the spirit of equitable decentralization, 100% of protocol generated revenue is redirected back to participants in the ecosystem and encourages and rewards long-term participation and growth. The team operates and maintains the 3/3 token tax in order to generate ongoing runway for the project, which puts an emphasis on incentivizing the core team to ensure ongoing high levels of interest, liquidity and trading volume on the TAI token, which also benefits all holders in the long term.