Sweep Capital generates it's revenues directly from the SWEEP token. On every swap (Buy or Sell), a 6% tax is charged to the users, called the Treasury Tax. The name says it all, 6% is taken out of every swap and gets sent to the treasury, for the NFT budget to list on the marketplace, for the team, marketing & hiring. 90% of the 6% goes to the NFT budget, while the other 10% goes to the rest.
The NFT budget is calculated based on SWEEP’s daily trading volume, as a percentage of total trading volume, excluding private sales.
· y = Available budget for NFT auctions
· x = Trading volume on SWEEP
· b = Percentage of treasury tax charged on transactions
· c = Percentage of treasury allocated to NFT auctions
In our case
· The percentage of treasury tax is set at 6%
· The percentage of treasury allocated to NFT auctions is set at 90%
We have a daily trading volume of $3,000,000
Based on the above, the allocated budget for NFT auctions would be:
y = $3 000 000 * (0.06 * 0.90) = $162 000
Illustration showing how the Sweep Capital treasury is being managed