HoneyTaxConfig

Turning Tokens into Micro-Economies

HoneyTaxConfig is HoneyPlay’s token-level tax rule that transforms any Sui Token<T> into a self-funding micro-economy.

Once attached to a token’s TokenPolicy<T> (via set_token_taxes), every meaningful mutation of that token—transfers, swaps, liquidity adds/removes, conversions, and spends—automatically routes value to four destinations:

1. Burn (deflationary pressure)

2. Treasury (NFT market-making, floor support, game ops)

3. Creator Rewards (claimable by the token’s creator)

4. Protocol Revenue (HONEY buybacks & OS funding)

Because the HoneyPlay AMM natively understands taxed tokens (Sui Token primitive), creators can set different rules for buy/sell /add/remove—without wrappers or custom routers.

This is a core primitive of the HoneyPlay Financial OS: it upgrades a simple currency into a game economy that funds itself, rewards its builders, and supports its markets.

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What HoneyTaxConfig Is (and Isn’t)

• It is a policy-bound configuration (in bps) for per-operation taxes:

  • spend_pct, transfer_pct, to_coin_pct, from_coin_pct

  • AMM-aware: buy_pct, sell_pct, add_liquidity_pct, remove_liquidity_pct

  • Plus a treasury_pct to earmark a share of the base tax for NFT floor sweeps & game treasuries.

• It isn’t a generic fee hook: it’s enforced by rules on Sui’s TokenPolicy, so it applies everywhere the token flows (wallet transfers, AMM swaps, liquidity ops, conversions).

✅ Only-on-Sui advantage HoneyPlay is the only AMM on Sui with native support for taxed Token primitives—no wrappers, no broken composability. Tokens remain first-class citizens across the OS.

Why It Matters (for Games & On-chain Economies)

• Closed-loop value flow: Every action funds long-term health (burn), player experience (treasury/NFT MM), and builders (creator rewards).

• Programmable economics: Different surfaces (buy vs. sell vs. LP) can carry different incentives.

• Composable by default: Works across AMM, Marketplace, HoneyJar incentives, and HoneyYield treasury with one policy attachment.

💡 Financial OS fit HoneyTaxConfig is the “tax kernel” that feeds: - AMM fees → HoneyYield (treasury) & HONEY buybacks - Token taxes → Burn / Creator / Treasury / Protocol - Activity → HoneyJar points → HONEY emissions (Oracle-regulated) Result: A token that pays for its own growth. Every trade/transfer funds burns, treasuries, and rewards—closing the loop between player activity, creator income, and market health.

How Taxes Are Computed & Routed

When a taxed operation occurs, HoneyTaxConfig computes a base tax and then layers system-wide splits:

• Base tax depends on the operation (transfer, buy, sell, add/remove liquidity, to/from coin, spend).

• Protocol & creator percentages are read from HoneyYield, ensuring consistent ecosystem-wide routing.

• Treasury percentage comes from HoneyTaxConfig (per token).

• Remainder burns, creating deflationary pressure.

🧭 AMM semantics “Buy” taxes the token you receive; “Sell” taxes the token you provide. Liquidity taxes apply when converting between token and coin legs during LP ops.

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Native AMM Support (No Wrappers, No Hacks)

The AMM integrates tax-aware helpers through TokenTradeCap:

• Swaps: buy_tokens_with_tax / sell_tokens_with_tax automatically applied inside AMM flows.

• Liquidity: to_coin_for_add_liquidity_with_tax, from_coin_for_remove_liquidity_with_tax.

• Claims: HONEY trading rewards claimed through token_trade also pass through HONEY’s own tax rules.

This preserves pool invariants and parallelization, while giving creators granular control over buy/sell/add/remove economics.

⚠️ Important Because taxes are enforced at the TokenPolicy level, they cannot be bypassed by custom routers. Exemptions exist (see below) for addresses that must operate tax-free (treasury, strategy contracts).

Lifecycle: From “Plain Token” to “Game Economy”

1. Create token & policy: Mint your token (Sui Token<T>) and obtain TokenPolicy<T> + TokenPolicyCap<T>.

2. Install HoneyTaxConfig

   • Call set_token_taxes with per-operation bps and treasury_pct.

   • Under the hood:

     • HoneyTaxRule is added as a rule to your policy (gating taxed actions).

     • A FeeCollector<T> is created in HoneyYield for protocol + creator accruals.

3. Go live

   • Create AMM pools (Stable/Curved/Weighted).

   • Taxes auto-apply on transfers, swaps, LP ops, to/from coin, and spend.

4. Accrue & claim

   • Creator uses their capability to claim rewards (SUI/ggSUI) from FeeCollector<T>.

   • Treasury allocation accumulates for NFT market-making and game ops.

   • Protocol portion routes into HONEY buybacks and OS operations.

Exemptions & Governance

• Exempt addresses (per token) can be allow-listed to bypass taxes (e.g., mint/burn vaults, exchange addresses, bridges etc).

• Capabilities gate sensitive actions:

  • TokenPolicyCap<T> — configure rules/taxes & manage exemptions.

• Event trail for every tax routing enables transparent analytics & BI.

Summary

HoneyTaxConfig is the economic engine that turns a token into a live, sustainable game economy:

• Programmable, per-surface taxes (buy/sell/LP/transfer/convert/spend)

• Automated routing to burn, treasury, creator, and protocol

• Native AMM support for Sui Token primitives

Plug it in once. From that point on, every action funds your game.