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The Tax Engine

Every deposit is taxed 5%; every withdrawal 10%. The rates are constants in the factory — not parameters, not governance proposals. Each tax unit splits six ways, in code, on every event.

The six-way split​

SinkShare of tax100-token deposit (5.00 taxed)Destination & mechanics
Dividend pool80%4.00Stays in vault; accrues pro-rata to all holders via the dividend index; claimable in the underlying token
Lock-in-vault burn10%0.50Recorded in burnedBalance and subtracted from totalAssets() — permanently unbacked
DAO4%0.20Fee collector → DAO treasury (owner-swept)
Vault creator2%0.10Immutable per-vault address; paid every event, forever
Creation platform2%0.10The frontend that hosted creation; immutable
Usage platform2%0.10Attributed per-transaction; headless calls fall back to the DAO rail
Net to depositor—95.00Minted as vault shares at the running exchange rate

Exit mirrors entry at double the rate: redeeming shares worth 100 tokens burns 10 tokens of value — 8.0 to dividends, 1.0 to burn, 0.4 DAO, 0.2 + 0.2 + 0.2 partners — delivering 90 to the exiter. Floor-division dust from the split lands on the burn portion; nothing is lost.

Why fixed taxes matter​

  • Un-ruggable by construction. The classic tax-token rug is a two-line upgrade: entryTax = 95%. In DHP there is no setter — the canon lives in immutable constants the factory passes at clone init.
  • Honest expectations. Every user, on every chain, in every vault, faces identical economics. Nothing for a creator to renegotiate, nothing for a DAO to vote up.
  • Aligned partners. Creators and platforms earn 2% + 2% of every in/out flow on vaults they spawn — recurring revenue for growing holding communities, not exit liquidity.
Read this part twice

The taxes make DHP a zero-sum game between users. Dividends are other users' taxes — not yield. If churn stops, dividends stop. If you enter and exit immediately, you pay ~14.5% round-trip. DHP is designed to reward holding and penalise churn; it can do nothing else.

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