# Taxation System

## What is Taxation System?

Quota has a **built-in taxation system** that exists as the protocol’s main incentivization mechanism. Taxes collected are then re-allocated to multiple pools, including but not limited to; support Quota’s on-chain referral program, which incentivizes ecosystem participants to then further contribute to the growth of the Quota ecosystem and the staking reward pools to allow for continuous replenishing of the staking rewards based on ecosystem growth and network activity. Parameters of the taxation system and rewards distribution are controlled through Quota’s on-chain community governance system, set to launch within the first 60 days of the project’s official launch.

<figure><img src="https://1885252408-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7OUuVEmdE56vjasu9mfm%2Fuploads%2FmW4aUPEr7AhzNSNnXp1G%2F%E1%84%89%E1%85%B3%E1%84%8F%E1%85%B3%E1%84%85%E1%85%B5%E1%86%AB%E1%84%89%E1%85%A3%E1%86%BA%202022-11-23%20%E1%84%8B%E1%85%A9%E1%84%92%E1%85%AE%207.00.24.png?alt=media&#x26;token=621bf4a9-a520-4134-b187-0cf35b521fec" alt=""><figcaption></figcaption></figure>

## Tax List

* **Positive AAS - 30% Tax**\
  This is the standard tax that is reallocated to referral rewards for ecosystem participants. Depending on the user’s NFT tier, referral rewards the user receives from their referees below are as shown on the chart below. Allocation of the remainder of the tax is as follows: 1% goes to Ecosystem Maintenance, 4.5% goes back to Perpetual Staking Pool Rewards, 0.5% goes to Rewards Allocation then the rest of the remainder goes to Dev Pool and Protocol Revenue in 50/50 ratio.
* **Staking Pool AAS - 30% Tax**\
  Refer to diagram/chart above. Rewards for ecosystem participants from this pool are allocated once every 7 days.
* **Staking Reward - 30%**\
  \&#xNAN;*“Same as Positive AAS for re-allocation”*
* **Mine Referral Rewards - 30%**\
  \&#xNAN;*“Same as Positive AAS for re-allocation”*

## Attachments

* Positive AAS Reallocation Chart

<figure><img src="https://1885252408-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7OUuVEmdE56vjasu9mfm%2Fuploads%2FB9JssESH90yEMHl0OC5f%2F%E1%84%89%E1%85%B3%E1%84%8F%E1%85%B3%E1%84%85%E1%85%B5%E1%86%AB%E1%84%89%E1%85%A3%E1%86%BA%202022-11-23%20%E1%84%8B%E1%85%A9%E1%84%92%E1%85%AE%202.10.28.png?alt=media&#x26;token=615ec749-ebf9-472c-99aa-fee40646d23f" alt=""><figcaption></figcaption></figure>

* Staking Pool AAS Tax Chart #1

<figure><img src="https://1885252408-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7OUuVEmdE56vjasu9mfm%2Fuploads%2F9V448MeJg2OqVAy1tk7P%2F%E1%84%89%E1%85%B3%E1%84%8F%E1%85%B3%E1%84%85%E1%85%B5%E1%86%AB%E1%84%89%E1%85%A3%E1%86%BA%202022-11-23%20%E1%84%8B%E1%85%A9%E1%84%92%E1%85%AE%206.59.34.png?alt=media&#x26;token=84a34ec0-a50b-415b-b0a4-1c71fabd70ba" alt=""><figcaption></figcaption></figure>

* Staking Pool AAS Tax chart #2

<figure><img src="https://1885252408-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7OUuVEmdE56vjasu9mfm%2Fuploads%2FAobPBL8kt0XaV5l6kRV1%2F%E1%84%89%E1%85%B3%E1%84%8F%E1%85%B3%E1%84%85%E1%85%B5%E1%86%AB%E1%84%89%E1%85%A3%E1%86%BA%202022-11-23%20%E1%84%8B%E1%85%A9%E1%84%92%E1%85%AE%202.16.26.png?alt=media&#x26;token=3a584283-5dc6-4529-b4e3-378c50aed412" alt=""><figcaption></figcaption></figure>


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