Glossary
What is Token tax?
A token tax is a fee the token's contract takes on transfers — a percentage routed to a wallet, liquidity, or burn on each buy or sell.
Tax (or 'fee-on-transfer') tokens deduct a set percentage when tokens move, often to fund marketing, reward holders, or auto-add liquidity. The rate and destination are set in the contract.
Taxes must be disclosed: hidden or extreme taxes are a hallmark of scams, and many DEX routers need a fee-aware swap path to trade them. On Monmint you can set and later adjust a transparent tax on tokens that support it.
Keep reading
Related terms
- HoneypotA honeypot is a malicious token you can buy but not sell, engineered so only the creator can cash out — a common rug-pull scam.
- ERC-20ERC-20 is the standard interface for fungible tokens on Ethereum and EVM chains like Monad, defining the functions (transfer, approve, balanceOf) every wallet and exchange expects a token to have.
- Renounce ownershipRenouncing ownership permanently gives up the owner's admin rights over a token contract, so no one can mint, change tax, or pause it again.