Transaction Tax

Each Ouroboros transaction is subject to a built-in transaction tax designed to fuel long-term user incentives and protocol sustainability. By default, a 10% tax is applied on every transfer or payment—meaning 90% of the amount is received by the recipient, and 10% is collected by the protocol to fund cashback rewards to all users in the form of STARs.

For example, if user A transfers 1,000 USDO to user B, user B will receive 900 USDO. A transaction tax of 100 USDO is charged, but user A will receive 10 STARs as a reward, which allows users to receive cashback streams over 100 epochs.

We have modularized the transaction tax function, allowing issuers of different Ouroboros assets to customize their base transaction tax rates and specific rates for particular use cases.