> For the complete documentation index, see [llms.txt](https://outbackfinance.gitbook.io/untitled/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://outbackfinance.gitbook.io/untitled/protocol/the-treasury.md).

# The Treasury

### Value to Investors Beyond $ROO

The treasury is one of the most important aspects to bringing value to the users of the protocol. Building a deep treasury allows users to benefit from other means besides the $ROO token. The treasury will be established via the presale. From there, the growth of the treasury will come from the taxation of the $ROO token. The treasury will be split as follows:

* 20% High Risk Adverse Assets
* 50% Stablecoin Staking and Yield-Farming
* 30% Cross-Chain Yield-Farming and Angel Investments&#x20;

With just basic staking alone, the treasury can grow by 20%. By the calculations done by the team, even the most minimal investments can lead to a minimum of a 400% gain in the current market conditions. Growing the treasury will allow us to reward users with various assets beyond the $ROO token.

### Dynamic Taxes

Inspired by Sphere Finance, the Outback Team has decided to implement dynamic taxes. This will have a positive effect for the average holder of the $ROO token. Normal taxes typically can harm the average investor in comparison to a whale in the protocol. With Dynamic Taxes, all investors will not be harmed via the taxes.&#x20;

Dynamic Taxes can best be explained by the Sphere Team. **Full credit** to them and their brilliant development! <br>

***From Sphere:*** "Dynamic taxes are an innovative concept created by the Sphere Team, which aims to minimize price manipulation by taxing sales/wallet transfers additionally based on how big of a share the holder has in correlation to the LP of SPHERE. This means that somebody with a lot of tokens in the ecosystem cannot dump the market without leaving a share of it in the hands of the community, making future attempts harder and harder. How many SPHERE tokens you hold is taken into account when calculating how big of a share of the LP you hold. For every 1% that you hold, the tax is increased by 5% until there's a total sell tax of 70%.

A simple calculation:

* 1% of LP - 5% tax
* 2% of LP - 10% tax
* 3% of LP - 15% tax
* 4% of LP - 20% tax
* so on and so forth.

This tax does not affect the ordinary buyer because of the sheer volume of LP one would need to have to make such a share possible."&#x20;

#### Why Taxes?

In order to sustain the protocol's liquidity, growth, risk-free value, hedging against inflation and to provide funds to the Treasury.

#### What are the Taxes Applied to?

* 13% Buy/Transfer tax
* 20% Sell tax&#x20;

#### What will the Taxes be used for?

As previously stated. The taxes will be used for overall protocol growth. The following breakdown is what can be expected:

20% Sell Tax Breakdown:

-5% to the Treasury

-5% to Marketing

-5% Risk-free value

-5% to the LP Pool\
\
13% Buy Tax Breakdown:\
-4% to Treasury

-4% to marketing&#x20;

-5% to LP

Taxes to the treasury will contribute in large part to the buy-back of tokens.
