Animal Farm — Dog Pound — Reduce your tax costs

4 min readOct 19, 2022

Animal Farm article overview

- Next Defi Destination — Animal Farm
- Animal Farm — Pig Pen Introduction — A great profit opportunity?
- Animal Farm Launch Giveaway — 5’000 USD price to win
- Animal — Piggy Bank — High time-locked bonus ahead

Being loyal is a good thing. Being loyal to the Animal Farm means staking DOGS (AFD) in the Dog Pound. The Dog Pound single asset staking smart contract will reduce transaction costs in the Animal Farm on their DOGS while providing you at the same time a dividend in form of PIGS and BNB tokens.

The idea here again is to not lock your investments forever, but using this dynamic tax system providing a form of incentive to increase your loyalty score by staking. 2/3 of all taxes collected on DOGS (AFD) transactions are swapped for BNB and paid out to stakers in the Dog Pound.

Vesting Mechanic

This is actually quite simple: The longer longer you stake in the Dog Pound, in the smart contract, the higher your loyalty score, the lower your DOGS taxes. The shorter the time your DOGS are active in this ecosystem, the lower your loyalty score, the higher your tax costs for the transactions. The driver is the motivation to stake longer in the Dog Pound to lower your taxes, which is deemed as kind of vesting to reduce your costs on the transaction costs, to have more money available to invest in other things.

Rewards

But there is more: The lower tax transaction costs are only one part of the (indirect) profits. If you compound in either the Auto Compound Pool or in the (Manual) Standard Compound Pool you will earn direct dividends over time:

- Auto Compounding Pool: Here you will earn PIGS (AFP) tokens. The BNB tokens, although these will be automatically converted to AFD/WBNB LP tokens, are compounded in the AFD/WBNB LP core farm, where you can claim your PIGS.
- Standard Compounding Pool: Here you will earn your rewards directly in BNB and can claim it.

Token Loyalty Score

DOGS (AFD) Token Loyalty Score is relative to the amount of tokens staked in the DOG POUND. All AFD must go through the DOG POUND pools to enjoy the tax reduction of 0.75% to 1.00% per day.

You can stake your AFD (DOGS) in either the Auto Compounding Pool which reduces your sale tax by 1.00% per day. Or in the Standard Compounding Pool which reduces your sale tax by 0.75% per day.

Wallet Loyalty Score

There is also a Loyalty Score related to your personal wallet. You can build your Wallet Loyalty Score to reduce your sales tax on all AFD tokens. This will start reducing your tax as soon as you use DOGS (AFD) in the Dog Pound smart contract.

AFD Wallet Loyalty Score refers to your wallet and transaction behavior over time and lowers your sales tax at DOGS (AFD) by 2% per month. Wallet Loyalty Score rewards are permanent and can reduce your total tax on AFD by up to 30%.

Lets assume you stake your DOGS in Dog Pound for 4 months. This is 4x 2% and you will get an 8% lower tax rate. And this is in addition to your percentage tax reduction Token Loyalty Score for all your transactions through your wallet.

Burn Mechanism

There is a deflationary burn mechanism implemented in the smart contract which reduces the total supply of the tokens over time by sending the tokens to famous 0x000 burn address. The same as other tokens are practicing their burns.

- 3% of the sales tax on DOGS (AFD)
- full sales tax (3%) on PIGS (AFP)

Tax

There are only tax costs on the DOGS (AFD) token when you send tokens to another wallet, sell DOGS, unpair DOGS liquidity pairs or interact with a non-native staking contract. Then the following taxes apply:

- Buy AFD: 0%
- Sell AFD: 6–90% according to your loyalty score
- Transfer AFD: 6–90% according to your loyalty score
- Unpair AFD LPs 6% on the AFD part of the pair
- Dog Pound deposit or withdraw: 0%

Auto Liquidity

The Animal Farm introduces a new liquidity helper contract, where 25% of all deposit fees generated by deposits or withdrawals from and to farms and pools will be sent to in BUSD.

There is no scenario in which DOGS (AFD) tokens are sold or sales pressure is generated in any way to add liquidity.This new contract only accumulates BUSD and when a certain threshold is reached, it buys AFD and adds AFD/BUSD liquidity where it is locked. This should generate a consistent cash flow buying DOGS (AFD) helping with a better price performance.

The contract can also help with burning DOGS. This creates an equal value of the two assets on the contract and the assets are then paired on PancakeSwap where the liquidity is locked.

And with that we conclude the article of the Dog Pound. Thanks for your time and have a great day.