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Farm

A "farm" refers to a staking farm, a service where users can participate in staking activities to receive rewards. Farms come in various forms, ranging from directly related to the ecosystem created by the core team or governance to those create by users for various purposes. This may have various applications depending on the operation method, and can generally be understood as a type of platform that assumes the securitization and recycling of assets by collecting staking assets from stakeholders, or that distributes specific profits or rewards to multiple participants or contributors. Essentially, a farm can be understood as a service that rewards participants or contributors based on staking activities, aiming to incentivize engagement and contribute to the ecosystem's growth and sustainability.

Each farm specifies the type of asset that needs to be staked, allowing users to deposit this staking asset. Subsequently, based on the amount and duration of staking, users can earn reward assets. This process involves staking a particular asset and receiving interest on it as compensation, which is commonly referred to as yield farming. However, the staking asset and reward asset may vary between different farms, depending on the nature and type of each farm. Therefore, stakers need to verify the assets rewarded before starting yield farming in a specific farm.

Types​

The types of farms provided by Coinmeca are divided into the following two types:

  • Main Farm

A farm that is mainly directly related to the actions and impacts within the ecosystem. Created directly by the Core team or through governance.

  • Derive Farm

A farm derived from the Main Farm, allowing anyone to create a Derive Farm that follows a specific Main Farm.

Yield​

Among Coinmeca's farms, there are not only farms with token distributions according to fixed schedules but also Real Yield Farms that operate based on actual earnings, even if irregularly by any mechanism. And also there are farms with differing staking assets and reward assets. Due to these variations, there are challenges in applying compound interest, and currently, a simple interest system is uniformly applied. However, there are plans to implement a compound interest system in the future.

Tax​

Interest earnings generated from staking the principal in a farm are subject to taxation. The tax rate, applicable to all farms, is uniformly set at 0.025%. The tokens collected as taxes are attributed to either the Reserve if they are major tokens within the ecosystem, or to the Vault if they are tokens external to the ecosystem. If the token is already listed in the Vault, this process gradually contributes to factors that increase the MECA exchange rate for that token.