HoneyTax

Turning Tokens into Self-Sustaining Economies

HoneyTax is HoneyPlay's token-level tax rule that transforms any Sui Token<T> into a self-funding digital 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:

Destination	Purpose
Burn	Deflationary pressure
Treasury	NFT floor sweeping, AI marketing, compute costs, growth initiatives
Creator Rewards	Claimable by the token's creator
Protocol Revenue	HONEY buybacks & Financial 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 Financial OS: it upgrades a simple currency into a digital economy that funds itself, rewards its builders, markets itself, and supports its own assets.

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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.

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🌍 Why It Matters

The Core Problem

Digital economies traditionally require constant capital injection for marketing, floor support, and growth. Creators must continuously raise funds or watch their economy stagnate.

The HoneyTax Solution

Every transaction automatically funds the economy's own expansion:

User Activity (swaps, transfers, trades)
        │
        ▼
HoneyTax Applied (configurable per operation)
        │
        ├── Burn → Deflationary pressure (token becomes scarcer)
        ├── Creator → Sustainable income for builders
        ├── Protocol → HONEY buybacks + OS operations
        └── Treasury → Growth fund
                │
                ▼
        Treasury Deployment
                │
                ├── Floor Sweeping → Auto-buy NFTs to maintain prices
                ├── AI Marketing → LifeOrDream Studio content generation
                └── Compute Costs → Infrastructure and new experiences
                │
                ▼
        More Visibility → More Users → More Activity → More Treasury

Result: A token that pays for its own growth. Every trade/transfer funds burns, treasuries, creator income, and automated marketing — closing the loop between user activity and economy expansion.

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💡 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.

The Self-Expanding Economy

Token Trading Activity
        │
        ▼
HoneyTax Collects Value
        │
        ├── Immediate: Burns reduce supply
        ├── Immediate: Creator earns income
        ├── Immediate: Protocol buys HONEY
        └── Accumulated: Treasury grows
                │
                ▼
Treasury Reaches Threshold
                │
                ▼
Automated Deployment
        ├── Floor sweep triggered (if NFT prices drop)
        ├── Marketing budget allocated (LifeOrDream API)
        └── New experience funded (AI-generated content)
                │
                ▼
Economy Expands → More Activity → More Tax Collection

🧮 How Taxes Are Computed & Routed

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

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

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

3. Treasury percentage comes from HoneyTax config (per token)

4. Remainder burns, creating deflationary pressure

                              Example: 5% Sell Tax 
User sells 1000 GAME tokens (5% sell tax = 50 tokens taxed)
        │
        ▼
Tax Distribution (configurable):
├── 20% Protocol (10 tokens) → HONEY buybacks
├── 20% Creator (10 tokens) → Creator wallet
├── 30% Treasury (15 tokens) → Growth fund
└── 30% Burn (15 tokens) → Permanently destroyed

🧭 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)

The AMM integrates tax-aware helpers through TokenTradeCap:

Operation	Function	Tax Applied
Swaps	buy_tokens_with_tax / sell_tokens_with_tax	Buy or sell tax
Add Liquidity	to_coin_for_add_liquidity_with_tax	Add liquidity tax
Remove Liquidity	from_coin_for_remove_liquidity_with_tax	Remove liquidity tax
Claims	HONEY rewards via token_trade	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 Token to Self-Sustaining Economy

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

2. Install HoneyTax: Call set_token_taxes with per-operation bps and treasury allocation:

   // Example configuration
   set_token_taxes<GAME>(
       policy,
       policy_cap,
       transfer_pct: 100,      // 1% on transfers
       buy_pct: 300,           // 3% on buys
       sell_pct: 500,          // 5% on sells
       add_liquidity_pct: 100, // 1% on LP add
       remove_liquidity_pct: 200, // 2% on LP remove
       treasury_pct: 3000,     // 30% of taxes → treasury
       ctx
   );

   • 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.

   • Treasury begins accumulating

4. Treasury Deployment: As treasury grows, funds deploy automatically:

   Trigger	Action
   NFT floor drops below threshold	Auto-sweep NFTs from market
   Marketing budget threshold reached	Trigger LifeOrDream API for content
   Development allocation	Fund new experiences/features

5. Creator Claims: Creator uses their capability to claim rewards (SUI/ggSUI) from FeeCollector<T>: claim_creator_fees<GAME>(fee_collector,policy_cap, ctx)

• 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.

📊 Configurable Tax Surfaces

Operation	When It Applies	Typical Range
transfer_pct	Wallet-to-wallet transfers	0-2%
buy_pct	Buying token on AMM	1-5%
sell_pct	Selling token on AMM	2-10%
add_liquidity_pct	Adding to LP	0-2%
remove_liquidity_pct	Removing from LP	1-3%
to_coin_pct	Converting Token → Coin	0-2%
from_coin_pct	Converting Coin → Token	0-2%
spend_pct	Explicit spend/burn	0-5%
treasury_pct	% of base tax → treasury	10-50%

💡 Strategy Tip Higher sell taxes than buy taxes discourage dumps while encouraging accumulation. Treasury allocation determines how much funds automated growth vs. immediate distribution.

Summary

HoneyTax is the economic engine that turns a token into a live, self-sustaining digital economy:

Feature	Benefit
Programmable taxes	Different rates for buy/sell/LP/transfer/convert/spend
Automated routing	Burns, treasury, creator, and protocol — no manual work
Native AMM support	Sui Token primitives, no wrappers needed
Treasury accumulation	Funds for floor sweeping + AI marketing + growth
Creator income	Sustainable revenue from every transaction
Deflationary burns	Token becomes scarcer over time

💬 Plug it in once. From that point on, every action funds your economy's growth.