What Are Buy Tax and Sell Tax?

• Buy tax and sell tax refer to the fees or tax rates charged to buyers and sellers during each transaction. These taxes are automatically deducted from every trade and transferred to a developer’s designated tax wallet or burn address.

• Their purpose is to achieve specific economic or community goals through taxation.

• The implementation of buy and sell taxes can help regulate market behavior, attract long-term investors, and provide sustainable funding for the project.

• However, this mechanism also increases the user’s transaction cost.

For example:

• A higher buy tax may be used to prevent large-scale dumping shortly after launch.

• A higher sell tax can discourage frequent selling, helping stabilize the token price.

• However, malicious developers may also use excessively high buy/sell taxes to scam users.

⚠️ Always check tax rates carefully before trading.

• Tokens with abnormally high taxes may indicate potential risks — conduct proper research before making any transactions.