Whale Tax

This section will describe Node creation and additional costs.

To ensure our project is safe from whales pumping up hundreds of nodes and subsequently dumping their large amount of rewards daily on everyone else. We have not only introduced a sliding tax, but a whale tax too. These taxes will work as follows:

Creation of Baby Narwhal Nodes

• 0-5 Current Baby Narwhal Nodes = 250 $COD

• 6-10 Current Baby Narwhal Nodes = 275 $COD

• 11-15 Current Baby Narwhal Nodes = 300 $COD

• 16-20 Current Baby Narwhal Nodes = 325 $COD

• etc.

For every 5 Baby Narwhal Nodes held, the price to create another node will increase by 25 $COD token. We believe this will promote people to burn their nodes by advancing them to the higher tiers we have to offer. Not only does this assist in lowering the daily emissions of the token, it also benefits the node owner long term as they will get a 1.5% increase on all future rewards (if upgrading from a baby to a teen narwhal node).

Upgrading Nodes

The same thing will occur for both upgrading to Teen Narwhal nodes and upgrading to Adult Narwhal nodes. It will work in the following way for both:

• 0-5 Teen Narwhal Nodes - upgrade cost = 5x Baby Nodes + 100 $COD

• 6-10 Teen Narwhal Nodes - upgrade cost = 5x Baby Nodes + 150 $COD

• 11-15 Teen Narwhal Nodes - upgrade cost = 5x Baby Nodes + 200 $COD

• 16-20 Teen Narwhal Nodes - upgrade cost = 5x Baby Nodes + 250 $COD

• etc.

So as the information above shows, for every 5 Teen Narwhals, there will be a further cost of 50 $COD per upgrade. This will promote people to utilise the next upgrade feature, the Adult Narwhal Node. The creation tax for the Adult Narwhal Node works in the exact same way as the creation tax for the Teen Narwhal Node.