They say the only two certainties in life are death and taxes. Ah, taxes — no one loves them, yet sooner or later, everyone pays them in some form. In a decentralized world, aren’t we supposed to break free from all that? Well… almost.

This piece explains our reasoning behind the 5% buy-and-sell tax on Sage tokens.

The Opposite of Poverty Isn’t Wealth — It’s Enough

Unlike projects backed by venture capital or flashy presales, Sage is self-funded. We didn’t host a VC round, nor did we conduct a “fjord sale.” We raised no upfront capital and don’t have a cushion of cash to fall back on. What we do have is a team of passionate people committed to making Sage the best it can be. But even big ideas need funding.

That’s where the 5% tax comes in. Each time people buy or sell Sage, that tax supports the project’s growth, whether by hiring developers, improving infrastructure, or expanding our outreach. In short, this tax fuels progress.

All Things Are Difficult Before They Are Easy

This tax isn’t forever. Right now, it’s essential, but our long-term plan is to phase it out. Once the liquidity in our pool fully unlocks, we aim to shift from tax revenue to project earnings for funding. This transition isn’t happening tomorrow, but it’s on the horizon.

In the meantime, we’re investing the tax revenue carefully. If you’re testing our products or following our media efforts, you’re already seeing that investment at work.

The tax may feel like a necessary inconvenience, but it’s here to help Sage reach its full potential — soon, we’ll be building without it.