# Core Mechanisms

## Mazu Token & Taxes

The $MAZU token is the central element of our ecosystem and is designed to simplify the complexities of DeFi and airdrop farming. To get exposure to yield opportunities, all our sailors need to do is hold $MAZU. \
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The $MAZU token is deflationary by design, with a 2% tax levied on each decentralised exchange transaction. The $MAZU buy tax is directed towards the treasury, supporting and expanding the operations of Mazu DAO. The $MAZU sell tax may be sent to a burn address, contributing to a reduction in the total supply of $MAZU.\
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This means that taxes are not directly applied to transactions, such as when a user sends $MAZU tokens from one wallet to another. Instead, the 2% tax is only levied on transactions relating to trades on decentralized exchanges (DEXs), affecting traders involved in swapping (buying/selling) $MAZU tokens through liquidity pools. This is enabled because taxes on $MAZU aren't embedded within the token contract itself; instead, taxes are enforced by the liquidity pool smart contracts that Mazu Finance integrates with. Mazu Finance plans to collaborate with the most popular DEXs on SUI to ensure that taxes on swaps apply across the board.&#x20;

## Mazu DAO

A significant portion of the self-financed funds will be placed in the Mazu DAO treasury. The DAO will be responsible for selecting low-risk opportunities to earn yield. Such opportunities may include, but are not limited to, borrow/lending pools, stablecoin LPs and liquid staking. \
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The $MAZU tax will continuously increase the capital of the DAO treasury, which can be allocated to different yield-bearing strategies. As more people trade $MAZU, this will further increase the DAO's revenues. As a result, the DAO will have a scalable and infinite source of yield and revenue, which will continue to grow indefinitely. For example, yield from liquid staking will continue as long as the Sui blockchain exists.

As DeFi on SUI continues to develop, we envision that Mazu DAO will continue to explore the most exciting and profitable yield strategies for $MAZU token holders.&#x20;

## Automated Exposure to Potential Airdrops

$MAZU holders will have exposure to multiple protocols on Sui and, therefore, might be eligible for airdrops from projects like Navi, Volo, and many more. As Mazu grows, we plan to partner with key SUI projects, increasing exposure to potential airdrops in the future.&#x20;

## Buy Back and Burn

The revenue generated from strategies and airdrops will be utilized to repurchase and burn the token, thereby increasing its value and scarcity. These repurchases will take place every week and will be transparent and verifiable by the community.

<figure><img src="https://3686613280-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FmKbvgOVXbRHpE9e8y2VU%2Fuploads%2Fdgp1FEzJv8JVlsr2Kqig%2Fimage.png?alt=media&#x26;token=6cc1e973-6156-4f75-be8a-3ce4b9a26244" alt=""><figcaption><p>$MAZU Token Flow</p></figcaption></figure>

## Sustainable Growth Cycle

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We have created an efficient mechanism for automated exposure to the Sui ecosystem. As a result, $MAZU holders can indirectly benefit from the yield of the Sui Ecosystem, Sui Airdrops, and taxes from buyers and sellers.\
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\&#xNAN;*De facto*, $MAZU holders are getting exposed to:

1\) Token Tax\
2\) DeFi Yield Strategies\
3\) Airdrops \
4\) Sui price appreciation&#x20;

On top of this, we aim to create a positive feedback look of infinite growth powered by SUIstainable and scalable yields where:\
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More trading volume ➡️ Larger treasury ➡️ Increased revenue from yields ➡️ More buybacks ➡️ Rising token value ➡️ More trading volume.

<figure><img src="https://3686613280-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FmKbvgOVXbRHpE9e8y2VU%2Fuploads%2FaH1CPtpHbHLgTgkMTip6%2Fimage.png?alt=media&#x26;token=ce738f26-a697-4877-a4d6-8fc16bd2ffdf" alt=""><figcaption><p>Mazu Cycle of Prosperity</p></figcaption></figure>

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