All content provided herein our website, hyperlinked sites, associated applications, telegram groups, social media accounts and other platforms is for your general information only. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness.

Referral links may be included on any outbound link.

No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose.

Any use or reliance on our content is solely at your own risk and discretion.

The author takes no responsibility or liability for any investments, profits, or lsoses you may incur or have incurred as a result of this information.

You should conduct your own research, review, analyse and verify our content before relying on them. DeFI cryptocurrency dApps are a highly risky activity that can lead to major losses, therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.

# Dog Pound

# Introduction

The DOG POUND is Animal Farm's single asset AFD staking contract and loyalty program which allows investors to reduce the transaction tax by at least 0.75% / 1.00% a day on their DOGS while earning a high yield BNB or PIGS dividend.

AFD has a variable tax that acts as an innovative form of vesting that does not lock users' assets, but instead creates an incentive structure that transfers value from users who operate AFD with a low loyalty score to users who are on DOG POUND.

2/3 of all taxes collected on AFD transactions are swapped for BNB and paid out to DOG POUND stakers.

Auto-Compounding DOG POUND allows stakers to reduce their AFD tax as quickly as possible while increasing their yields!

---

# Vesting Mechanic

The tax structure combined with the Token and Wallet Loyalty Rewards Score acts as a form of vesting.

However, this is a form of vesting that gives the token holder more options.

The tax acts like a kind of vesting, the shorter the time AFD is active in the ecosystem, the more tax the token holder who carries out a transaction pays.

It works similarly to the vesting model, but has the added incentive of benefiting AFD holders rather than those who quickly withdraw capital from the ecosystem.

Token and Wallet Loyalty Rewards Score also makes this innovative vesting mechanic a game. While this is an innovation, we have seen how successful game theoretic incentives through taxes can be very effective for more sustainable DeFi tokenomics and earning mechanics.

---

# Token Loyalty Score

AFD Token Loyalty Score is relative to the amount of tokens staked in the DOG POUND.

All AFD must go through the DOG POUND pools to enjoy the tax reduction of 0.75% to 1.00% per day.

Staking AFD (DOGS) in:

• The Auto Compounding Pool reduce sale tax by 1.00% per day.

• The Linear Pool reduce sale tax by 0.75% per day.

# Wallet Loyalty Score

Build Wallet Loyalty Score to reduce sales tax on all AFD tokens.

Wallet Loyalty Score refers to wallet transaction behavior over time and lowers sales tax at AFD by 2% per month.

The Wallet Loyalty Score rewards are permanent and can reduce total tax on AFD by up to 30%.

For example, if you stake at least a total of 10 AFD, indifferently which pool or even both, after 4 months, will achieve an 8% lower tax rate (in addition to your percentage tax reduction Token Loyalty Score ). This 8% is also permanent for future AFD that can transact through the wallet.

---

# Rewards

The rewards of the DOG POUND are paid to the participants according to their share percentage.

Staking your AFD (DOGS) in:

• The Auto Compounding Pool allows you to earn your Rewards in PIGS. The BNB rewards are automatically converted to an AFD/WBNB LP and used in the farm AFD/WBNB LP where you earn PIGS.

• The Linear Pool allows you to earn your rewards directly in BNB.

* The process is managed in the backend, it will be visible only in the corresponding Dog Pound section.

The DOGPOUND's BNB vault distributes 3% of the total balance to stakers daily, according to the pool allocation.

---

# Burn Mechanism

We have implemented a burn mechanism that reduces the total supply in real time as tokens are transacted, as opposed to sending tokens to a 0x000 burn address.

• 3% of the Sales Tax on DOGS
• The full Sales tax (3%) on PIGS

This mechanism actually removes the tokens from the total supply and provides more accurate data about our tokens on sites like CoinMarketCap and DexTools.

---

# Dogs Tax Explained

Tax on the DOGS token only applies when you want to:

• Transact with another wallet
• Sell AFD
• Transact with a non-native lp contract

So you can buy AFD, use it on DOG POUND to improve your token and Wallet Loyalty Score, and claim your rewards tax-free.

* A 24-hour withdrawal cooldown is set up for every deposit.

** The Loyalty Score Wallet's access threshold equals 10 AFD or more.

---

* the loyalty score still applies to these AFD would you wish to sell them at a later stage.

** the contract allows AFD/BUSD liquidity to be added without paying the 90% transaction tax ADD LIQUIDITY DOGS LP

* the loyalty score still applies to these AFD would you wish to sell them at a later stage.

** the contract allows AFD/WBNB liquidity to be added without paying the 90% transaction tax ADD LIQUIDITY DOGS LP

---

The tax that AFD swaps for BUSD and BNB breaks down as follows:

• 3% is burned

the rest, from 3% to 87% according to loyalty scores:

• 1/3 is swapped for BUSD and sent as reward to PIG PEN .
• 2/3 is swapped for BNB and sent as reward to DOG POUND contract.

---

# Auto Liquidity

In the new liquidity helper contract, 25% of all deposit fees generated by deposits into or withdrawals from farms and pools will continue to be sent in BUSD to the AFD liquidity helper.

There is no scenario in which AFD is sold or sales pressure is generated in any way to add liquidity. In fact, the Helper contract can only generate buying pressure.

The new contract now only accumulates BUSD and when BUSD reaches a certain threshold, it buys AFD and adds BUSD liquidity to the AFD token where it is locked.

This new model creates a consistent new cash flow that buys AFD, enabling better price performance and a deeper, decentralized, closed-loop liquidity pool.

Alternatively, if the value of AFD on the contract is higher, some of the AFD are burned, removing them from the contract but also from the overall token supply.

This creates an equal value of the two assets on the contract and the assets are then paired on PancakeSwap where the liquidity is locked.

# FAQs

Want to know more? Have a specific question?