# A Deeper Dive into Tokenomics

Vesting tax:

For all tokens that are not claimed through the farm there will be a 45% vesting tax that will decrease 5% daily, this includes pre-sale tokens. This tax is imposed to prevent swing traders and bots from stealing from the Unicorns. This tax will promote the creation of nodes. When nodes are created, and rewards are claimed, there will be NO selling tax!

Tokenomics explained:

Unicorn’s model of sustainability allows the protocol to have 75% selling pressure on node creation because of the lack of sellers we will face from the vesting tax. This allows the protocol to build a massive marketing campaign, liquidity growth, and investment treasury. We will start with a respectable 50,000 USDC liquidity pool, which will allow the token to have solid appreciation in price which would be haltered with a larger pool. This will allow the protocol to lock in $Rainbow at a price point that will be healthy for the protocol. This will happen because when nodes are created, 50% of the tokens will be sold to be added to liquidity to prevent large swings of the price of $rainbow and allow members to have a similar cost for nodes!

We will introduce bonding after day 3 of launch to build up additional momentum and to create a large treasury investment pool as 80% of the USDC from the creation of bonded Unicorns will go directly into treasury investments!

The 17% tax from claiming $Rainbow from Unicorns will go directly back into the rewards pool to keep the protocol sustainable, with 2% for marketing. Unicorns will then be directly paid the amount of USDC from the rest of their claimed rewards that will be sold through our smart contract to bypass the vesting tax!

As the price and protocol matures, we will reduce selling pressure as needed to create sustainability. We aim to lower selling pressure from node creation to 10% within the first month! As bonded nodes will be able to supply our treasury and we will use the additional selling pressure to build the liquidity pool indefinitely and allow the price of the token to climb unrestrained.

Lastly, the 5 USDC flat claim fee per Unicorn will restraint users from constantly claiming and selling, and will benefit the protocol through development, marketing, treasury, and buybacks!
