Peg Protection Taxes

These are the various mechanisms for protecting and incentivizing peg.

Radiance Sales Tax

There is a 1% sales tax on sales of Radiance.

• 0.4% will be converted to GLOW and sent to the Battery Treasury.

• 0.6% will be converted to BUSD and sent to the Starship Maintenance Treasury.

Stars Sales Tax

When Radiance is above peg, there is a flat 1% sales tax on sales of Stars.

• 0.2% is sent to the Winning Stars Treasury

• 0.2% is converted to BUSD and sent to the Battery.

• 0.6% is converted to BUSD and send to Starship Maintenance.

When Radiance is below peg, there is a sales tax on Stars, the tax is 1% for every 0.01 that Radiance is below 1 BUSD, up to a maximum of 40%. The Stars that are collected as a tax are used in this way:

1. All of the taxed Stars are sold to buy Radiance (without tax)

2. If there are more GLOW available than the amount taxed, 40% of the Radiance will be converted to GLOW.

3. If there are less GLOW tokens than the amount taxed, all available GLOW will be purchased.

4. Any remaining Radiance is burned.

TWAP Price of Radiance (in BUSD)	Tax on Stars sales
1.00	0%
0.99	1%
0.98	2%
0.97	3%
0.96	4%
0.95	5%
0.94	6%
0.93	7%
0.92	8%
0.91	9%
0.90	10%
...	...
0.60	40%

In order to sell Stars, the slippage must be set to a number higher than the current tax. For example, if the tax is 15%, the slippage should be set to about 16%.