At the current state, the Auto-Cashout converts 95% MONSTA of an inactive wallet to BNB, rewards the function caller with 5% of the inactive wallets MONSTA holdings and burns the converted MONSTA out of the liquidity pool. As the total burn rate is accelerated through the Auto-Cashout a 1% deflation period finishes faster and triggers the available CAKE crumb rewards while only a fraction of CAKE might be added to the CAKE Gravity Vault (25% of all added CAKE during a 1% deflation period is shared among holders).
Since CAKE is only added to the CAKE Gravity Vault by buys/sells/transfers, only the conversion of MONSTA to BNB is adding taxes (2.5% per transaction) to the protocol to buy CAKE for the Vault when the Auto-Cashout is triggered (aka. Kitchen). To ensure CAKE crumb rewards stay relevant for MONSTA holders we propose to change the parameters of the currently applied tax rate for the Auto-Cashout feature.
Note that in every option where a change is proposed the caller reward has decreased from 5% to 2.5%. The proposed addition of CAKE to the vault will provide the entire holder base with better CAKE reward rates and a faster-growing vault (which increases the holder shares). We also want to keep some liquidity to further alleviate pressure on the LP to possibly ease restrictions on the daily auto-cashout limit.
After the changes are implemented (if there are any), we have planned a little surprise that we are sure you would all vote YES for.
If you are not sure which option is the best, please start a discussion in our community on Telegram to get different opinions on this proposal.
Options:
Legend: Cashout - The amount of MONSTA being converted to BNB. The BNB is taken out of the MONSTA LP, the MONSTA is added to the LP and burned directly.
Vault - A percentage of MONSTA from an inactive wallet is converted to CAKE and added to the CAKE Gravity Vault (increasing overall share and crumbs)
Liquidity - A percentage of the inactive wallets MONSTA value that stays inside the LP (leaves this percentage of BNB inside the LP)
Reward - A percentage of the inactive wallets MONSTA holdings that is being rewarded to the function caller