Use trading taxes to build token backing, creating a safety net for holders.

This use case leverages the trading taxes often implemented in meme tokens. Instead of using these taxes solely for liquidity provision or burning, they are sent to the token's Glue. As trading volume occurs, the backing value of the token increases.

This creates a growing price floor for the token, providing a safety net against total loss of value when hype fades. It can help extend the lifespan of meme tokens by transitioning them from pure speculation to assets with real backing. This mechanism could reduce the impact of whale sell-offs and provide some protection against rug pulls by ensuring a minimum recoverable value.

• Mechanism: Channel trading taxes of taxable tokens to a dedicated Glue.
• Impact: Creates backing based on trading volume, establishing a backed price.
• Benefit: Provides a safety net for investors against risks like hype cycles, large sell-offs, and potential rug pulls.

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To better understand the advantages on Glue for your token and your business model you can find out in []

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Introduction

Allocating trading taxes from meme tokens to the token's Glue address can create a growing price floor, providing a safety net for holders. This guide covers how to implement a tax mechanism that routes collected taxes to the Glue.

Implementation

• Determine Your Token or NFT Glue Address
• Setting up or changing the Tax Recipient as owner to an existing Meme Token
• Sending Meme Tax Manually or via a Multisig
• Creating a Meme Token with Tax to the Glue

Conclusion

By allocating trading taxes to your token's Glue, you create a mechanism that provides long-term value to holders, potentially extending your meme token's lifespan and stability. This approach sets your token apart by offering a growing safety net for holders.

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Coming Soon

We’re going to launch these expansions for you at sticky.finance and as open source code in our Github soon

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Frequently Asked Questions (FAQ)

• How does allocating trading taxes to Glue benefit token holders?