FLOKI routes a slice of every on-chain trade into its treasury
FLOKI applies a 0.3% tax on every on-chain buy and sell across Ethereum and BNB Chain, channelling the proceeds into a DAO-controlled treasury that funds development and marketing.
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How the tax works
Every time $FLOKI changes hands on a decentralised exchange, a small portion of the trade is redirected before it reaches the buyer. A 0.3% transaction tax applies to every on-chain buy and sell on BNB Chain and Ethereum. The contract address on Ethereum is 0xcf0c122c6b73ff809c693db761e7baebe62b6a2e.
The fee is deducted directly from each trade to fund activities that support the development and growth of the Floki ecosystem. Proceeds go to the Floki treasury, with allocation decided by DAO governance.
The tax applies only to DEX activity. There is no tax on transfers between wallets. The 0.3% transaction tax is also not applied when users bridge tokens between blockchains, meaning holders moving $FLOKI between Ethereum and BNB Chain pay nothing extra. Trades executed on centralised exchanges are similarly untouched, leaving DEX buys and sells as the sole source of treasury inflows from this mechanism.
A rate cut driven by the DAO, with a path to zero
The current rate is the result of a landmark governance decision. The original tax on the FLOKI token stood at 3%. The DAO proposed reducing it to 0.3%, arguing that matching Uniswap's default fee would make it insignificant enough to stop discouraging traders. The transaction tax was formally lowered to 0.3% effective 8 p.m. UTC on February 3, 2023. The proposal passed with a 99.97% majority voting in favour.
@FLOKI has signalled the tax is not a permanent fixture. The project's long-term goal is for Floki to become self-sustaining through revenue generated from its utility products, to an extent where the transaction tax can be removed entirely. The team has stated the tax is intended to phase out as product revenues grow enough to replace it. No timeline has been set.
Until that point, the treasury remains funded by the levy on every DEX swap, with the DAO retaining control over how those funds are allocated and whether the rate changes further.
Sources:
Floki Whitepaper: Operations and Funding
CoinDesk: Floki Inu DAO Passes Proposal to Burn Over $100M Worth of Tokens
Floki Whitepaper: Multi-chain Protocol
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Crypto RichRich has been researching cryptocurrency and blockchain technology for eight years and has served as a senior analyst at BSCN since its founding in 2020. He focuses on fundamental analysis of early-stage crypto projects and tokens and has published in-depth research reports on over 200 emerging protocols. Rich also writes about broader technology and scientific trends and maintains active involvement in the crypto community through X/Twitter Spaces, and leading industry events.