Economics
Fee Structure
No protocol cut on ordinary trading tax. Two treasury flows exist by design, and everything else is the creator's.
HookPad's launch factory charges no fee: deploying a token costs only gas. There is no protocol share of ordinary buy or sell tax. What the creator earns is enforced at the contract level by HookPadHook and HookPadFeeLocker, not promised off chain. This page maps every basis point, who receives it, and under what condition it applies.
Ordinary trading tax
You set a base tax between 1% and 10% at launch. The hook maintains a global trade counter per token and cycles that base rate against fixed tiers on every buy and sell. On the buy side, every tier in the six position cycle accrues to the creator. On the sell side, positions four and five in the eight position cycle route to the protocol treasury; every other position is the creator's.
| Flow | Condition | Rate | Recipient |
|---|---|---|---|
| Buy cycle | Positions 1, 2 | Base rate | Creator |
| Buy cycle | Position 3 | 5% | Creator |
| Buy cycle | Position 4 | 4% | Creator |
| Buy cycle | Position 5 | 3% | Creator |
| Buy cycle | Position 6 | 2% | Creator |
| Sell cycle | Positions 1, 2 | Base rate | Creator |
| Sell cycle | Position 3 | 6% | Creator |
| Sell cycle | Position 4 | 7% | Treasury |
| Sell cycle | Position 5 | 5% | Treasury |
| Sell cycle | Positions 6, 7, 8 | 4%, 3%, 2% | Creator |
Counters are global per token and shared across every wallet. Both cycles repeat forever.
Creator accruals are held in ETH by HookPadFeeLocker. The creator calls claimFees(token) to withdraw the full balance to their wallet. The interface surfaces this as "Withdraw to wallet" on the token page and on the dedicated tax breakdown page.
Anti-snipe tax
During the first five seconds after launch, any buy from a wallet that is not on the creator's whitelist is taxed a flat 60%. This tax is routed entirely to the protocol treasury, not to the creator. It exists to blunt automated snipers in the window before a human could realistically trade, not to generate ongoing creator revenue. It only applies in that short window and only to wallets the creator did not whitelist before launch.
| Parameter | Value |
|---|---|
| Window | 5 seconds after pool initialization |
| Rate | 60% flat on the buy side |
| Whitelist cap | 30 addresses, immutable after launch |
| Recipient | Protocol treasury |
| Creator share | 0% |
Post-snipe sell cooldown
Once the anti-snipe window closes, the first five sells, counted globally across every wallet, are taxed a flat 30%. Unlike the anti-snipe tax, this cooldown tax is paid entirely to the creator. It functions as an extra deterrent against an immediate coordinated dump without diverting anything to the treasury. Sell number six onward enters position one of the normal sell cycle.
| Parameter | Value |
|---|---|
| Trigger | First five sells after the snipe window closes |
| Rate | 30% flat |
| Recipient | Creator (via HookPadFeeLocker) |
| Treasury share | 0% |
Liquidity: burned, not shared
100% of every launch's liquidity position is minted straight to 0x000000000000000000000000000000000000dEaD at creation. Neither the protocol nor the creator holds back any share of it. The burn position NFT ID is emitted in the TokenLaunched event and displayed on the token page with a direct link to Blockscout, so anyone can verify the position's current owner on chain. There is nothing to migrate, unlock, or rug: the pool is permanent from the first block.
Treasury revenue today
The protocol treasury accrues ETH from exactly two live flows: the 60% anti-snipe tax on non-whitelisted buys in the first five seconds, and the two sell cycle positions (7% and 5%) on every token. There is no launch fee, no LP share, and no cut of the creator's ordinary buy tax. This treasury balance is the economic base the planned $HOOKP buyback mechanism is designed to consume. See the $HOOKP token page for the intended allocation once the token contract ships.
On chain enforcement
All routing is enforced inside HookPadHook: the hook computes the applicable rate from the trade counter and snipe state, collects the tax in ETH on the swap path, and forwards creator and treasury cuts to their respective destinations. Every split is observable through the TaxCollected event, which records the token, direction, snipe flag, gross ETH amount, effective rate, and both cut amounts.