LunaDoge is a DeFi meme token. A tax is applied for static rewards and automatic LP acquisition. Static rewards are proportionally shared over all LOGE holders. Automatic LP acquisition applies a tax which is added to the LP. As the LP increases, price stability increases as well.
Static rewards are used to solve problems related to impermanent loss. The reward amount is conditional upon the volume of the token being traded. This mechanism aims to alleviate some of the downward sell pressure put on the token. Furthermore, the mechanism encourages holders to hold onto their tokens to obtain rewards from every LOGE transaction. The static rewards are proportionally shared over all LOGE holders and dependent on the total tokens held.