Tax NFT: Choosing 1/3/5/10% and the Four-Way Split
- Creator tax on BigPump is 0% until graduation at 4 ETH. Before that, only a 1% pool fee applies.
- After graduation the tax splits four ways - treasury, burn, dividends, liquidity - and must total 100%.
- At today's real volumes, a 5% tax with a 40% dividend leg on $CHUMP's $4.66M day would route about $93,132 to holders in ETH.
If you launch a token on BigPump you make two decisions that most creators make in ten seconds and then live with forever: the tax rate, and how that tax splits four ways. This article uses today's real Robinhood Chain volumes to show what each choice actually pays and what it costs you.
First, the part people get wrong: the tax is 0% at launch
On BigPump a token starts on a bonding curve. While it is on the curve:
- The creator tax does not apply at all. Not reduced - not applied.
- The only cost is a 1% pool fee, split 95% to the platform and 5% to the creator.
- The virtual reserve of 1.5 ETH sets the opening price. It is not real liquidity.
The token graduates when cumulative real ETH into the curve reaches 4 ETH. At that moment a Uniswap V2 pool is created and the LP tokens are sent to a burn address. Graduation takes a one-time 5% of the pool's ETH, split 95% platform / 5% creator. Only after that does your chosen tax apply to DEX trades, with the platform taking a further 1% per trade on top.
So the practical read: your tax settings are a decision about the token's life after 4 ETH, and most tokens never get there. Set them anyway, because the ones that do get there cannot change the past.
The rate: 1%, 3%, 5% or 10%
A tax is charged on trades, so it is paid twice on a round trip. Add the platform's 1%:
| Creator tax | Buy cost | Sell cost | Round trip |
|---|---|---|---|
| 1% | 2% | 2% | 4% |
| 3% | 4% | 4% | 8% |
| 5% | 6% | 6% | 12% |
| 10% | 11% | 11% | 22% |
That table is the whole trade-off. A higher tax funds more dividends, more burn and more liquidity per trade - and it suppresses the number of trades, because a 22% round trip makes short-term flipping unprofitable. Which is the point, if what you want is holders rather than churn.
Look at today's board through that lens. $LAPTOP turned over 111.6 times its liquidity in 24 hours. $POPE turned over 85.1 times and fell 98.72% in six hours. A 10% tax would have made most of that churn unprofitable before it happened. It would also have made the pump smaller.
The four-way split
Whatever rate you pick, it is divided across four destinations that must total 100%:
| Leg | What it does | Who benefits |
|---|---|---|
| Treasury | Accumulates for the project to spend | The project, and holders indirectly if it is spent well |
| Burn | Permanently removes supply | Every holder, proportionally, with no action needed |
| Dividends | Paid to holders in ETH by holding share | Holders above the minimum balance |
| Liquidity | Adds depth to the pool | Everyone who has to exit later |
Tax accrues in the token and is converted to ETH on sell orders once it passes a threshold, then routed. Dividends pay in ETH by holding share above a minimum balance; the pair, router, burn address and protocol contracts are excluded from dividends. Full mechanics: book.bigpump.ai.
What the legs would pay at today's real volumes
These are hypotheticals - none of the tokens below is a BigPump Tax NFT token. They are here because their volumes are real, current, and cover three orders of magnitude.
| Token | 24h volume | 5% tax collected | 40% dividend leg | Market cap | Dividend leg as % of cap |
|---|---|---|---|---|---|
| PONS | $26,779,589 | $1,338,979 | $535,592 | $508,771,941 | 0.11% |
| MEME | $25,750,282 | $1,287,514 | $515,006 | $121,431,077 | 0.42% |
| CASHCAT | $10,385,326 | $519,266 | $207,707 | $191,190,415 | 0.11% |
| CHUMP | $4,656,613 | $232,831 | $93,132 | $35,552,215 | 0.26% |
| AI | $2,833,418 | $141,671 | $56,668 | $230,689,422 | 0.02% |
Two things fall out of that table.
Dividends are a function of turnover, not market cap. $AI has nearly double $CHUMP's market cap and would pay a thirteenth as much per unit of cap, because it turns over 0.12x while $CHUMP turns over 4.2x. If you want your holders paid, you need a token people trade - which sits in direct tension with a high tax.
These numbers are one day, and one day is not a rate. $PONS did $53.3M yesterday and $26.8M today. Volume halved across the board in 24 hours. Do not annualize any of this, and do not promise your community a yield - you would be promising them other people's churn.
How I would actually set it
There is no correct answer, but there are coherent ones. Three shapes that make sense:
- Community payout token: 3% tax, split 10 treasury / 20 burn / 50 dividends / 20 liquidity. An 8% round trip still permits active trading. Half the tax goes straight back to holders in ETH, which is the thing people can actually feel. The 20% liquidity leg means the pool deepens as volume grows - directly addressing the problem that killed $POPE and $UPS today.
- Deflationary token: 5% tax, split 10 treasury / 50 burn / 20 dividends / 20 liquidity. A 12% round trip discourages flipping. Burn is the leg that requires no trust in you at all: it happens on-chain, benefits everyone proportionally, and cannot be misallocated.
- Funded project: 5% tax, split 50 treasury / 10 burn / 20 dividends / 20 liquidity. Only defensible if you publicly commit to what the treasury pays for and show it. A large treasury leg with no public spending record reads to holders exactly like a fee you charge yourself.
What I would avoid: 10% tax with a small liquidity leg. You get the worst combination - a 22% round trip that suppresses the volume you need, and no mechanism thickening the pool. And a 100% treasury split, which is legal, configurable, and will be read as exactly what it looks like.
The liquidity leg is the one creators under-weight and traders notice most. Today's board had two tokens die on pools under $20,000. A tax that thickens the pool is the only part of your tokenomics that fixes that automatically.
FAQ
Can I change the tax rate after launch?
Treat your configuration as permanent when you set it. Check the current mechanics at book.bigpump.ai before deciding, and assume your holders will read the settings as a promise.
Do holders get dividends before graduation?
No. Dividends and the creator tax both start after the token graduates at 4 ETH. Before that only the 1% pool fee applies. See hold to earn: 0% dividends until the 4 ETH line.
What is the minimum balance for dividends?
There is a minimum holding threshold, and the pair, router, burn address and protocol contracts are excluded. Current values are in the docs.
Is a high tax a red flag for buyers?
It is a cost that has to be justified by what the four legs do. A 10% tax where 50% burns and 20% adds liquidity is a design. A 10% tax that is 90% treasury is a fee. Buyers can read the split on-chain, so assume they will.
How do I launch one?
Create a token on BigPump - one transaction, no code, no initial liquidity required, with an optional bbb-suffix vanity address for 0.001 ETH. The full walkthrough is at book.bigpump.ai.
Product facts from BigPump documentation. Volume figures are real on-chain data from the BigPump research snapshot 2026-09-08 00:10 UTC, applied hypothetically - none of the tokens named charges a BigPump creator tax. Nothing here is a yield promise or investment advice.
Disclaimer: memecoins are extremely volatile and most go to zero. This article is not financial advice. Do your own research and only spend what you can afford to lose.