The 4% tax
What each buy and sell pays, and where it goes.
- Tax
- 4% on buys and sells
- Reserve
- 2%
- Stakers
- 1%
- Development
- 1%
#Buys and sells pay 4%
Buys and sells through the $KYZN/WETH pool on Uniswap v2 pay a 4% tax. Wallet-to-wallet transfers pay nothing.
| Transfer | Tax |
|---|---|
| Buy from the $KYZN/WETH pool | 4% |
| Sell to the $KYZN/WETH pool | 4% |
| Add liquidity to the pool | 4%, as a sell |
| Remove liquidity from the pool | 4%, as a buy |
| Wallet to wallet | None |
| Any other pool or exchange | None |
| To or from the Reserve, Staking or the Gateway contract | None: exempt, Staking’s Compound buys included |
The tax is taken in $KYZN from the amount traded. Trades anywhere but the pool fund neither the Reserve nor stakers.
#Where the tax goes
| Of each buy or sell | Share |
|---|---|
| Reserve | 2% |
| Stakers | 1% |
| Development | 1% |
| Tax | 4% |
When the tax is collected, the contract records the Reserve’s and Staking’s shares of it in $KYZN. When the tax is sold, each of the two receives the ETH of its recorded share.
The Reserve’s 2% and the stakers’ 1% are sent in the same transaction as the sale. The Reserve buys chip equity with its share; Staking streams its share to stakers. If either contract refuses the ETH, its share is held for it, and trading continues.
Development receives the rest of each sale’s ETH, 1% of each trade at the 4% tax. It is held in the token contract and sent to the development wallet in a transaction of its own, which anyone may call. No trade sends ETH to a wallet the owner chooses.
- Sent by the pool
- 10,000 $KYZN
- Tax, 4%
- 400 $KYZN
- Received by the buyer
- 9,600 $KYZN
- Recorded for the Reserve, 2%
- 200 $KYZN
- Recorded for Staking, 1%
- 100 $KYZN
- Development, the rest
- 100 $KYZN
Example amounts. Development receives the ETH the tax sells for, less the Reserve’s and Staking’s shares. A sell works the same way: 4% of the $KYZN sold is taken before the rest reaches the pool.
#When the tax is sold
The tax collects in $KYZN in the token contract. It is sold for ETH through Uniswap v2’s Router02, during a sell, once the tax held reaches the swap threshold.
| Rule | Value |
|---|---|
| Swap threshold | 500,000 $KYZN, 0.05% of supply |
| Largest sale | 0.25% of the pool’s $KYZN, and never more than the sell that triggers it |
| Price effect | About 0.5% at most, on the sell that triggers it |
| Minimum out | None: the two bounds above limit each sale |
| A failed sale | The tax stays held, and the next sell tries again |
The sale runs in the same transaction as the sell that triggers it, before that sell reaches the pool. Tax held beyond one sale’s bounds is sold over the following sells.
The threshold is fixed at 500,000 $KYZN, 0.05% of supply: ownership is renounced, so it cannot change (Ownership).
No transfer can send $KYZN to the token contract. That $KYZN would be sold untaxed and outside the split, so the transfer fails.