Guide
Tax and rewards
Where the trade tax goes, and how creators and holders claim it.
The trade tax#
Every buy and every sell pays the token's tax in the pair asset. The creator picks the tax at launch, from 1% to 10%. It never changes.
- On a buy, the tax comes off the amount you pay.
- On a sell, the tax comes off the payout.
Where the tax goes#
The tax has two parts.
| Part | Rate | Split |
|---|---|---|
| Base | 1% of every trade | 70% to the recipient (or holders), 30% to the treasury |
| Extra | Tax minus 1% (0% to 9%) | 100% to the recipient (or holders). No treasury cut. |
Example#
A token has a 5% tax. You buy with 1 ETH.
- Base: 0.01 ETH. The recipient gets 0.007 ETH, the treasury gets 0.003 ETH.
- Extra: 0.04 ETH, all to the recipient.
- 0.95 ETH goes into the curve and buys tokens.
The tax recipient#
The recipient collects the non-treasury share. By default it is the creator.
- If the creator sets a recipient at launch, it is locked forever.
- If the creator leaves it blank, the creator can change it once later from the token page. After that it is locked.
- The recipient cannot be the token, the hook, the factory, or the PoolManager. Those addresses would lose the funds.
Contract recipients
If the recipient is a contract, it must be able to receive the pair asset. The app asks you to confirm twice before it locks a contract address.
Claiming as the recipient#
Tax accrues inside the hook. The recipient claims it from the token page, in the pair asset.
- Claim fees pays the base share.
- Claim extra tax pays the extra share.
Only the recipient can claim in this mode.
Holder mode#
The creator can send the recipient share to all holders instead. Press Route taxes to holders on the token page.
- Only the creator can turn it on.
- It is free. You pay only gas.
- It is one-way. It cannot be turned off.
- It applies to both the base share and the extra tax. The treasury still gets its 30% of the base.
How holders get paid#
- Tax accrues
Each trade adds tax to the token's pending balance.
- A trade sweeps it
The first trade at least 15 minutes after the last payout moves the pending balance into the holder pool. That trader pays the gas.
- Holders claim
Each holder claims their share whenever they want. Rewards are paid in the pair asset.
If trading is quiet, anyone can press Distribute to holders now once 15 minutes have passed. In holder mode, Claim fees and Claim extra tax also sweep the pending balance into the pool, for anyone, with no wait.
How shares are counted#
- Your share is your balance divided by all tokens held outside the curve.
- Tokens still in the curve earn nothing.
- When you sell or transfer, rewards you already earned stay with you. The new owner earns only future rewards.
- The pool pays out only when at least 1 token is held outside the curve.
- A claim pays what the pool holds, up to your share. Rounding can leave a few wei behind.
The treasury share#
The treasury's 30% of the base is set aside at trade time, per pair asset. Anyone can send it to the treasury with Claim treasury share. A broken recipient can never block the treasury share.
Treasury: 0xe36A1419b03Fbc389D615857596258F2C39fDEce
Older tokens#
Tokens from factories before 0x91Ba…CEc8 use a fixed 1% fee with the same 70/30 split. They have no extra tax, no automatic holder payouts, and no recipient change.
The token page shows a note for these tokens and hides the claim, holder, and recipient buttons. Creators of older tokens can still call claimFees on that factory's hook directly. VERIFY
See Previous factories.