Every time someone sells $TOMB, a service fee will be applied. The fee is based on the current price of $TOMB in relation to its peg. The current fees can be found here.
As $TOMB approaches peg, the service fee % will increase. Below peg, the service fee becomes an increased "tax" to deter bad actors from selling and bringing instability to the protocol.
Based on $TOMB's price, the DAO will do one of two things the $TOMB collected from service fees:
Action 1: When the price is too far away from peg (+10% above), half of the collected $TOMB will be sold for $FTM, paired with the remaining $TOMB, and added as liquidity.
Action 2: When the price is within our peg range (between 10-0%) or below peg, the collected $TOMB will be burned.
Like any new protocol in the DeFi space, its most pressing issue is liquidity. An immature system with low liquidity opens itself up to price manipulation if there is no mechanism in place to prevent it.
By adding a service fee that is used to deepen liquidity while above peg, the community as a whole helps the protocol mature more quickly, thereby protecting their own underlying investments.
Since the service fee is percentage of the total $TOMB in each sell, both whales and smaller players contribute equally to the protocol's security.
When approaching a contraction, fees work as deterrents in order to relieve sell pressure. This, combined with the DAO's treasury strategies, helps push $TOMB back up above peg as quickly as possible.
Once the project has matured and moved into its next development phase, $TSHARE holders will be able to vote on a decrease/increase to the taxes, or even on disabling the Gatekeeper system altogether.