iGaming platform Busta on Tuesday announced the launch of a fully customizable Decentralized Exchange (DEX), that will provide projects the ability to choose the percentage of transaction (tx) tax they want and how the collected tax will be used.
Current leading DEX's operate with a transaction tax, which collects a small percentage of every trade that takes place on the exchange (roughly 0.2–0.5 percent) and then shares it between the DEX treasury, rewards for LP providers, and burning the DEXs native token.
The downside in this is that tx tax is locked in from the start, which comes with inherent drawbacks, including having to pay four separate tx taxes when someone wants to buy, create LP, break LP and then sell a token. This can cost as much as 20 percent of the total token value if a token has a 5 percent tx tax. Also, the majority of centralized exchanges (CEX) don’t want to list tokens with a tx tax, which makes it difficult for projects to grow their community of holders.
“Tailored transaction tax is a crucial step forward for DEXs as it gives projects a much better chance of listing their tokens on CEXs by allowing them to decide where and how that tax will be used,” said Fran Strajnar, Founder of BUSTA.
“Many CEXs just outright don’t list tokens with transaction taxes as they have to consider that tax every time they process a withdrawal or transfer funds between wallets internally. In addition, many of these tokens are missing out on a tax that could be used to reinvest into their ecosystem. We believe BUSTA is the solution.” stated Mark Berisha, CEO of recently launched (v1) MFRM.io token-backed-NFT marketplace. $MFRM was listed on BUSTA DEX in the first cohort of partner tokens which also includes vaulty.fi and Neural Pepe.
BUSTA DEX has built the transaction tax functionality into the router of their automated market maker (AMM), making it fully customizable. Through this customization, BUSTA is working to create a utility that could go as far as to make the current model for DEXs completely obsolete.