Tax Mechanism (5% Buy / 5% Sell)

To ensure sustainable growth, fund development, and reward long-term holders, the $VEIL token employs a transaction tax on all on-chain decentralized exchange (DEX) trades.

This mechanism is designed to be fully transparent and to directly benefit the ecosystem and its participants.


Tax Structure

A 5% tax is applied to every buy and sell transaction of the $VEIL token conducted on a DEX (such as Uniswap).

  • Buy Tax: 5%

  • Sell Tax: 5%

Important Note: This tax applies only to DEX swaps. It does not apply to wallet-to-wallet transfers or trades conducted on Centralized Exchanges (CEXs) if the token is listed there in the future.


Allocation of Tax Revenue

The revenue generated from the transaction tax is automatically allocated to support the long-term health and growth of the DarkVeil ecosystem. The allocation is as follows:

  • 2% - Staking Rewards: This portion is sent directly to the staking contract to be distributed as yield to users who are staking their $VEIL tokens. This directly rewards long-term holders.

  • 3% - Treasury & Development: This portion is sent to the protocol's treasury. These funds are used for ongoing development, marketing, operational costs, and funding future ecosystem initiatives.

This tax structure is a core component of our economic model, creating a self-sustaining system where trading activity directly fuels rewards for stakers and ensures the protocol has the resources to innovate and grow.

Next, review the initial allocation of the token supply in Distribution & Vesting.

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