tax configuration

Configure tax rates and distribution for your token. Skip this step for a standard (no-tax) token.

Tax Rate

The tax rate is the percentage taken from each trade on the bonding curve. For example, a 3% tax means 3% of each buy and sell goes to the configured destinations.

  • Minimum: 0% (no tax — standard token)

  • Maximum: 25% (2500 basis points)

  • Common values: 3–5% for most projects

Tax Distribution

The tax collected is split between four destinations. The total must equal 100%.

Destination
Description

Marketing

Sent to the marketing wallet (vault recipient)

Deflation

Tokens are burned, reducing supply

Dividends

Distributed to token holders

LP

Added to the liquidity pool

Common Configurations

Type
Marketing
Deflation
Dividends
LP

Marketing only

100%

0%

0%

0%

Mixed

70%

10%

10%

10%

Burn-heavy

30%

50%

10%

10%

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If Marketing is 100%, the token uses Tax Token V1 implementation (simpler, lower gas). Any other distribution uses Tax Token V2.

Advanced Settings

Setting
Default
Description

Tax Duration

100 years

How long the tax is active

Anti-Farmer Duration

3 days

Period where anti-farming protections are active

Minimum Share Balance

10,000 tokens

Minimum tokens needed to earn dividends

Token Implementation

Flap uses different smart contract implementations based on your tax config:

  • Standard Token — no tax, simplest implementation

  • Tax Token V1 — marketing at 100%, gas-efficient

  • Tax Token V2 — custom distribution splits, more features

This is handled automatically — you don't need to choose an implementation.

Next Step

Proceed to Vault Setup if you want revenue sharing, or skip to Wallet Setup.