Burn & Tax
Configure token burn rates and trading taxes in the Burn & Tax tab of the Advanced Creator.
🔍 Overview
The Burn & Tax tab lets you configure two mechanisms that affect every trade of your token: burning and taxation. Both are enforced by the token's smart contract and cannot be changed after deployment. This immutability is a core differentiator of DibDex — participants can verify the exact burn and tax rates before buying a token, with the guarantee that these economics will never be altered by the creator or anyone else.
🔒 Immutable by Design — Once deployed, burn and tax rates are permanently locked in the smart contract. No one — not even the creator — can change them.
🔥 Burn Rate
Token burning permanently removes a small percentage of tokens from circulation on every transfer. This creates deflationary pressure — as tokens are burned, the total supply decreases over time, which can increase the value of remaining tokens.
⚙️ How Burn Works
- A trade or transfer of your token occurs
- The burn percentage is calculated on the transfer amount
- That amount is sent to a dead address (permanently removed from supply)
- The remaining amount reaches the recipient
🔥 Burn Configuration
Use the burn rate slider to set a percentage between 0% and 1% (0–100 basis points). The rate applies equally to all transfers.
| Rate | Effect |
|---|---|
| 0% | No burning — supply stays constant |
| 0.01% (1 bps) | Very light deflation over time |
| 0.1% (10 bps) | Noticeable supply reduction with active trading |
| 1% (100 bps) | Strong deflationary pressure |
⚠️ Watch the Friction — Higher burn rates increase friction on trades. A rate that is too high can discourage trading activity.
💰 Tax Rate
A trading tax collects a small percentage of every trade and sends it to a designated wallet address. This generates ongoing revenue that can fund development, marketing, or community initiatives.
⚙️ How Tax Works
- A trade or transfer of your token occurs
- The tax percentage is calculated on the transfer amount
- That amount is sent to the tax recipient wallet
- The remaining amount reaches the recipient
🏦 Tax Configuration
- Tax Rate Slider — Set a percentage between 0% and 1% (0–100 basis points)
- Tax Recipient Wallet — The address that receives all collected taxes
| Rate | Effect |
|---|---|
| 0% | No tax — frictionless trading |
| 0.01% (1 bps) | Minimal revenue per trade |
| 0.1% (10 bps) | Steady revenue stream with active trading |
| 1% (100 bps) | Significant per-trade revenue |
💡 Balance Is Key — Like burn rates, high tax rates add friction and can discourage trading. Balance revenue needs with trading volume.
🔥💰 Burn + Tax Combined
Burn and tax are independent — you can enable both, one, or neither. When both are active, the total deduction per trade is the sum of both rates. For example, a 0.1% burn + 0.1% tax means 0.2% is deducted from every transfer.
📊 Quick Math — Total per-trade deduction = burn rate + tax rate. Keep the combined rate reasonable to maintain healthy trading volume.