Tax Token

B.fun's Tax Token feature gives creators control over token economics through configurable transfer and trade taxes. Instead of platform-assigned creator rewards, creators can set up a tax on their token that generates revenue from every transfer and trade.


How Tax Works

A Tax Token charges a configurable percentage on every token transfer and trade. The tax is deducted automatically and accumulates in the token contract. Once the accumulated tax reaches a threshold, the TaxProcessor distributes the funds according to the creator's configured split.

Tax is completely separate from B.fun's 1% platform trading fee. The platform fee is charged on all trades regardless of whether the token has tax enabled.


Distribution Channels

When tax is collected, it is distributed across four channels based on the split configured at creation. Each channel serves a different purpose:

Channel
Description

Funds Recipient

Direct revenue sent to the creator's designated wallet address. This is the primary way creators earn from their token.

Holder Dividend

Proportional distribution to all token holders. When this channel is active, a Dividend Contract is deployed to manage distributions.

Token Burn

Buyback and burn mechanism that purchases tokens from PancakeSwap V2 and burns them, permanently reducing the circulating supply.

Add to Liquidity

Routes tax funds back into the PancakeSwap V2 liquidity pool, deepening liquidity and supporting price stability.


Configuration During Creation

Tax is configured during token creation and is available in both Standard and Advanced creation modes. All tax parameters are fixed at creation and cannot be changed afterward.

Tax Rate

The percentage charged on each token transfer and trade. Setting the tax rate to 0% effectively disables the tax feature.

Distribution Split

The allocation of collected tax across the four distribution channels, specified in basis points (bps). The total across all four channels must equal 100% of the tax collected.

Funds Recipient Address

The wallet address that receives the Funds Recipient share of the tax. Defaults to the creator's wallet address.


Processing Mechanism

Tax funds accumulate in the token contract until a threshold is reached. At that point, the TaxProcessor.dispatch() function distributes the accumulated tax according to the configured split.

  • Anyone can trigger the dispatch function — it is a public call.

  • An automated bot monitors tax accumulation and triggers distribution when the threshold is met, so creators and holders generally do not need to call it manually.


Dividend Claiming

If the Holder Dividend channel is active, token holders earn a proportional share of the tax allocated to dividends.

  • Holders can manually claim their dividends by calling withdrawDividends() on the Dividend Contract.

  • Automated distributions may also deliver dividends to holders without requiring manual action.


Key Points

  • Tax is optional — creators can set a 0% tax rate to launch without any token tax.

  • Separate from platform fees — B.fun's 1% platform trading fee applies to all trades regardless of the token's tax configuration.

  • Immutable after creation — the tax rate, distribution split, and funds recipient address are all fixed at token creation and cannot be modified later.

  • Available in both modes — Tax configuration is accessible in both Standard and Advanced creation modes.

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