Trade tax

#Every pool trade pays 4%

Every buy and every sell through the $KYZN/WETH pool on Uniswap v2 pays a 4% tax. The tax is taken in $KYZN, inside the transfer. The rate is the same for buys and sells.

tax                   = amount × 4%
buy:  buyer receives  = amount × 96%
sell: pool receives   = amount × 96%

#Wallet transfers are untaxed

The tax applies to trades through the pool and to nothing else. A transfer between two wallets pays no tax. Five exemptions cover the protocol's own contracts, the Gateway's settlement sales and the liquidity add that opens the pool.

The exemption list has five entries: the token contract, the Reserve, the Staking contract with its Compound buys, the Gateway settlement address, and the launch liquidity add. Changing the list is not an owner power. Every other buy or sell through the pool pays 4%.

#Tax accrues in $KYZN

The tax is not sold trade by trade. It accrues as $KYZN in the token contract, in one balance: the tax balance. The split into Reserve, stakers and development happens later, in ETH, when a swap runs.

Buys and sells both add to the tax balance. Only a sell starts a swap. A balance built up by buys waits for the next sell through the pool.

Accrued tax is not burned. It stays in total supply until a swap sells it into the pool.

#Swaps run on sells only

A sell through the pool starts a tax swap once the tax balance has reached the swap threshold: 0.05% of supply, 500,000 $KYZN. Buys never start a swap. The settlement rule runs swaps on sells only.

trigger = sell through the pool  and  tax balance >= threshold
sold    = min( tax balance, 0.25% × supply, triggering sell )

The swap sells through Uniswap v2 Router02 with swapExactTokensForETHSupportingFeeOnTransferTokens. The ETH it brings is split 2 : 1 : 1 in the same transaction. Any part of the balance the swap does not sell stays in the token contract for later sells.

The highest threshold the owner can set, 1,000,000 $KYZN, sits below the fixed 2,500,000 $KYZN cap. A swap never sells more $KYZN than the seller who triggers it.

#Tax settles in ETH

The ETH from each swap is split 2 : 1 : 1 in the same transaction as the swap. The Reserve receives half. The Staking contract and the development wallet receive a quarter each.

Reserve      = ETH × 2 ÷ 4
Staking      = ETH × 1 ÷ 4
Development  = ETH × 1 ÷ 4

The split is exact in ETH for every swap. The ETH a swap brings depends on the pool price when the swap runs, not on the prices of the trades that paid the tax. Measured against those trades, each share can differ from exactly 2%, 1% and 1% of their ETH value.

#The smallest bound wins

A swap sells the smallest of three amounts: the tax balance, 2,500,000 $KYZN and the triggering sell. Each example isolates one of the three. Inputs are illustrative, and the tax balance is stated at the moment the swap runs.

#Router02 supports fee-on-transfer

$KYZN is a fee-on-transfer token. The tax is taken inside the transfer, so a pool sell delivers 96% of the $KYZN the seller sends. A router has to accept that difference to settle the trade.

Uniswap v2 Router02 supports fee-on-transfer tokens through swapExactTokensForETHSupportingFeeOnTransferTokens. The token contract uses this function for every tax swap.

Every address is listed with a copy button in Contract addresses.

#The tax can only fall

The owner can lower the tax. The owner cannot raise it, and it never exceeds 4%. A lowered tax is never raised again, not even back to 4%.

The swap threshold moves only between 0.01% and 0.1% of supply. The development wallet can change. The 0.25% cap, the 2 : 1 : 1 split and the Reserve and Staking addresses are outside the powers of the owner.

The 2 : 1 : 1 ratio applies to the ETH of every swap, at any rate the owner sets. The full owner lists are in Token and launch.

#Parameter sheet

• ReserveThe ReserveChip equity bought with the tax, grouped by supply-chain stage and priced by Chainlink.
• StakingStaking1% of every trade, funded every 24 hours and streamed to stakers per second.
• ReserveRedemptionBurn $KYZN for a pro-rata share of every Reserve asset at backing minus 2%.
• TokenToken and launchFixed supply, allocation, liquidity, locks, owner limits and the launch order.