Tax Handling

The process of distributing taxes

Taxes are collected in the Token contract and are only handled when selling (or adding liquidity) and when the swap threshold is met.

The creator can configure the following tax handling properties:

• Swap Threshold (required)

  • Represented as a percentage of the total supply, the Swap Threshold is defined as the amount of taxes collected in the contract required before taxes are distributed.

• Handling Amount

  • The Handling Amount is an optional feature that is available for tokens that have Native Taxes. Represented as a percentage of the total supply, the Handling Amount defines the amount of taxes to handle at the time of distribution. This is useful in the scenario where the collected taxes in the contract are significantly higher than the Swap Threshold which would otherwise cause a large swap to occur when converting tokens into Native tokens.

FAQs:

Q: Why not handle taxes on every transaction?

A: Handling taxes costs more in gas fees, doing this on every transaction would be a waste of gas as the tax to distribute would likely be minimal due to it being more frequent.