Buy and Sell Tax
A buy and sell tax is token-contract logic that deducts part of certain trades or transfers according to rules programmed by the token issuer.
✦ Key Insight
High or changeable taxes can materially affect execution price and, in extreme cases, make selling economically impractical.
✕ Common Misconceptions
Extremely high sell taxes can behave similarly to a honeypot. Check maximum rates and administrator permissions, not only current settings.
Detailed Explanation
In Practice
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Smart Contract
A smart contract is blockchain-deployed code that can hold state and execute predefined rules when called.
Liquidity
Liquidity describes how easily an asset can be bought or sold in meaningful size without causing a large change in price.
Slippage
Slippage is the difference between an expected trade price and the actual execution price.
Honeypot Token
A honeypot token is a malicious or heavily restricted token that users can buy but ordinary holders cannot successfully sell under normal conditions.
Contract Verification
Contract verification demonstrates that published smart-contract source code compiles to bytecode corresponding to the code deployed at a blockchain address.