Understanding Sheesha’s Unstaking Tax and Fees Structure
Today they’ll shed some light on the tax and fee structure that exists within the Sheesha Finance staking platform.
First, if you aren’t sure about the fees I am referring to, let’s catch you up to speed.
What Is Their Unstaking Tax?
Members will need to pay a fee when they unstake their tokens from the Sheesha platform. This incentivizes stakers to remain staked for the long term. Remember, the longer you stake, the more you earn!
The unstaking tax for the Sheesha tokens is as follows:
- Sheesha (ETH) = 4%
- Sheesha (BSC)= 4%
- Sheesha (MATIC) = 2%
The unstaking tax for the Sheesha LP tokens is as follows:
- Sheesha (ETH)= 4% after the first 24 months
- Sheesha (BSC)= 4% after the first 24 months
- Sheesha (MATIC)- 4%
The unstaking tax for both Ethereum and Binance Smart-Chain Sheesha LP tokens is 96% during the first month. It decreases by 4% every month until it reaches a flat rate of 4% where it will remain.
The unstaking tax for Polygon Sheesha LP tokens remains flat at 4%.
What is This Tax Used For?
At Sheesha Finance, they’re building a community of long-term stakers and hodlers who are in it for the long run, and they reward that mindset. They believe that crypto is the future and they want to bring as many Sheeshans as they can on the road to mass adoption.
That is why the unstaking tax is re-distributed back to stakers in the form of native and LP Sheesha token rewards. A small percentage of those fees are also burned. This helps stabilize the price and ensures Sheesha tokens retain a level of scarcity.
Understanding Network/Gas Fees
One of the fundamental characteristics of blockchain technology is that for a transaction to be processed securely on the network, a fee needs to be charged and goes to the miners and validators who run and secure the network.
Some centralized exchanges may cover a network fee, allowing users fee-free transactions. But in the world of DeFi, users are responsible for covering these fees.
This transaction fee is not charged by, nor controlled by Sheesha Finance and they do not keep any portion of this fee.
This fee is charged above the Sheesha tax figures highlighted above.
Transactions that trigger network fees can occur from the following types of transactions:
- Sending Crypto
- Staking Crypto
- Unstaking Crypto
- Claiming Rewards
To get the most out of your rewards, make sure the amount that you are claiming, staking, or withdrawing is substantial enough to justify the cost. Paying $50 worth of ETH to claim a daily reward worth $1 probably isn’t the best idea.
And that’s it for this article. That should pretty much sum up everything you need to know about Sheesha’s staking platform fees and the wider DeFi industry in general. Until next time Sheeshans, happy staking!