Yeah, so it is only a 10% tax for each transaction. You are very right, encourages people to just hold, and definitely not try arbitrage. Every 10% tax is split. 5% goes back to the holders. The other 5% is split "50/50 50/50 half of which is sold by the contract into BNB, while the other half of the SAFEMOON tokens are paired automatically with the previously mentioned BNB and added as a liquidity pair on Pancake Swap." take from their white paper. :) Kind of like POS but I don't think wallets are confirming transactions. This is the first Deflationary token I heard about there are others popping up as well.