Tax Management

The process of distributing taxes

Taxes are accumulated in the token contract and are managed only during sell transactions (or adding liquidity) when the swap threshold is reached.

Creators can customize the following tax handling settings:

Swap Threshold (Required):

Defined as a percentage of the total supply, this is the amount of collected taxes in the contract needed before the taxes are distributed.

Handling Amount:

An optional feature available for tokens with native taxes. Represented as a percentage of the total supply, it specifies how much taxes should be handled during distribution. This is useful when the accumulated taxes in the contract far exceed the Swap Threshold, preventing large swaps when converting tokens into native tokens.

FAQs:

• Why not manage taxes on every transaction? Handling taxes for each transaction increases gas fees and could be inefficient, as the amount of tax to distribute might be minimal due to the frequent handling.