Tax Token

Complex ERC-20 with taxation features

The Tax Token complies with the ERC-20 standard and comes with all of the core and optional features a Basic Token does plus taxation capabilities. A creator can tailor tax features and their given tax rates to meet their project's requirements. The taxes are permanent and cannot be changed after launch, this is to prevent abuse.

How are taxes collected?

Taxes get collected in the Token smart contract and are handled on sell (or when adding liquidity) once a certain number of tokens have been collected (for more information see Tax Handling). For taxes involving a currency that is not the Token (e.g. ETH), a sell is performed which swaps Tokens into the other currency.

How does taxation work?

Taxes are configured by project creators prior to deploying their Token. Once deployed, taxes cannot be modified, this is to prevent bad-actors.

For Fueled tokens, taxes are collected and swapped into the Native Token (e.g. ETH) which go towards repaying the Fuel + Interest. Once repaid, the tax features configured by the creator come into place. The rate at which these taxes are collected is at the same total tax rate as the configured Token.

How are whitelisted wallets affected by tax?

Whitelisted wallets are still charged buy/sell taxes to prevent abuse. They are however exempt from transfer taxes. Whitelisted wallets also do not receive reward distributions.

What are the benefits of creating a Tax token?

Tax tokens allow teams to passively generate revenue from simple trading volume, increase the liquidity pool size, reward holders, or any combination of these advantages. These are earned in increments as well without needing to offload team tokens making it simpler on the team and more palatable to holders/investors.

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