Tax Mechanics

How the 5/5% tax works under the hood

How Tax Collection Works

The 5% buy/sell tax is split into two streams: 4% funds the Vortex Pot and 1% goes to the Team. This split is deployer-adjustable via the smart contract.

Buy Tax (5%)

When a user buys VORTEX on a DEX:

1. The swap is executed through the VORTEX smart contract

2. 5% of the transaction value is calculated

3. This 5% is automatically swapped to USDC via the DEX router

4. 4% of the USDC is sent to the Vortex Pot

5. 1% of the USDC is sent to the Team wallet

6. The user receives 95% of the expected tokens

Sell Tax (5%)

When a user sells VORTEX on a DEX:

1. The user initiates a sell of X tokens

2. 5% of the tokens are intercepted by the contract

3. These tokens are swapped to USDC via the DEX router

4. 4% of the USDC is sent to the Vortex Pot

5. 1% of the USDC is sent to the Team wallet

6. The remaining 95% of tokens are sold as normal

Transfer Tax (0%)

Wallet-to-wallet transfers are tax-free. This allows:

• Moving tokens between personal wallets

• Sending tokens to friends

• Interacting with the staking contract without tax

Tax Flow Diagram

User Buys VORTEX          User Sells VORTEX
       │                            │
       ▼                            ▼
   5% Tax (USDC)              5% Tax (USDC)
       │                            │
       └────────────┬───────────────┘
                    │
              ┌─────┴─────┐
              │           │
           4% (80%)    1% (20%)
              │           │
              ▼           ▼
     ┌──────────────┐  ┌──────────┐
     │  VORTEX POT  │  │   TEAM   │
     │  (Prize Pool) │  │  WALLET  │
     └──────┬───────┘  └──────────┘
            │
   ┌────────┴────────┐
   │                 │
Winner Drawn?     No Winner?
   │                 │
   ▼                 ▼
50% → Winner    15% → Stakers (USDC)
35% → Rollover  85% → Rollover
10% → LP/Buyback
 5% → Treasury

Important: The 4/1 split between Vortex Pot and Team is deployer-adjustable via the smart contract. The default configuration directs 80% of tax revenue (4%) to the prize pool and 20% (1%) to the team.

Tax Revenue Examples

Daily Trading Volume	5% Tax Collected	4% → Vortex Pot	1% → Team
$50,000	$2,500	+$2,000/day	$500/day
$100,000	$5,000	+$4,000/day	$1,000/day
$500,000	$25,000	+$20,000/day	$5,000/day
$1,000,000	$50,000	+$40,000/day	$10,000/day
$5,000,000	$250,000	+$200,000/day	$50,000/day

On days when no vortex winner is drawn, 85% of the pot rolls over and continues growing with the next day\u2019s tax revenue.

Anti-Gaming Measures

Measure	Purpose
Minimum transaction size	Prevents dust attacks that clog the swap mechanism
Swap threshold	Tax USDC is batched and swapped when accumulated amount hits threshold (reduces gas)
Blacklist for contracts	Prevents MEV bots from exploiting tax arbitrage
Max wallet limit	Prevents single wallet from accumulating excessive supply
Max transaction limit	Prevents large single trades from manipulating price

Tax Exemptions

The following addresses are exempt from tax:

• Staking contract

• Liquidity pool management

• Treasury operations

• Protocol-owned contracts

Tax exemptions are hardcoded and cannot be modified post-deployment for security.