> For the complete documentation index, see [llms.txt](https://four-meme.gitbook.io/four.meme/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://four-meme.gitbook.io/four.meme/guide/introducing-tax-tokens-on-four.meme.md).

# Introducing Tax Tokens on Four.Meme

### 1. What is a Tax Token?

A Tax Token charges a predefined percentage fee whenever the token is traded **after** **graduation**.

These taxes are automatically handled by the protocol and can be allocated to one or more of the following destinations:

* Funds Recipient Wallet\
  Redirect tax proceeds to a designated wallet (e.g. treasury, operations)<br>
* Divide to Holders (Dividends)\
  Distribute rewards to holders who meet the minimum balance requirement<br>
* Burn (Reduce Supply)\
  Permanently remove tokens from circulation<br>
* Add to Liquidity\
  Automatically add liquidity to the trading pool

The total allocation must sum to 100%.

### 2. When Are Taxes Applied?

Taxes are applied only after the token is officially launched.

* ❌ No tax is charged during the bonding curve phase
* ✔️ Taxes activate once a token is graduated

This design protects users during the bonding curve phase and ensures a consistent, predictable trading experience for everyone once the token graduates.

### 3. Tax Rate Configuration

During token creation, builders can select a tax rate from predefined options:

* 1%
* 3%
* 5%
* 10%

The selected tax rate applies to each eligible trade after launch.

### 4. Dividend Distribution Mechanism

If a portion of tax is allocated to holder dividends, the system works as follows:

1. Taxes accumulate on-chain during trading
2. Once a predefined threshold is reached, accumulated tokens are converted into the base token (e.g. BNB or the trading pair asset)
3. Dividends are distributed proportionally to eligible holders<br>

Key principles:

* The more tokens a holder owns, the more dividends they receive
* Distribution is fully on-chain and transparent

Tax Token dividends are now automatically distributed, with the following conditions:

* Dividends will only be distributed once accumulated rewards reach a value of 1,000 USD
* Distribution runs once per day at 00:00 (UTC+8)

⏳ Tokens launched before 13 Feb 2026 still require manual claiming. Effective for new launches going forward.

### 5. Minimum Balance Requirement

Builders can define a minimum token balance required to qualify for dividends.

* Example: 10,000 tokens
* Wallets below this threshold will not receive dividends

This helps prevent dust wallets from consuming distribution resources.

### 6. Claiming Dividends

Holders can claim dividends in two ways:

* Automatic trigger:\
  Transfer any amount of tokens to trigger dividend distribution<br>
* Manual claim:\
  Claim directly from the token detail page<br>

Unclaimed dividends remain accumulated until claimed.

### 7. Anti-Sniping Protection

Free Mode includes an optional Anti-Sniping feature.

When enabled:

* High transaction fees are applied during the first few blocks after token creation
* Designed to reduce bot sniping and protect early liquidity

This feature is configurable at launch.

### 8. How to Create a Tax Token

To create a Tax Token on four.meme:

1. Select Free Mode (Tax Tokens are not supported in X Mode yet)
2. Enable the Tax option
3. Configure:
4. Tax rate
5. Allocation percentages
6. Minimum dividend balance
7. Recipient wallet address
8. Launch the token

All parameters are locked at creation and enforced by the protocol.

### 9. Summary

Tax Tokens on four.meme provide builders with:

* Flexible, transparent token economics
* Sustainable incentives for long-term holders
* Built-in liquidity and supply management
* Protection against early-stage bot abuse

Designed for builders who want to go beyond short-term hype.

<br>


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