> For the complete documentation index, see [llms.txt](https://docs.taprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.taprotocol.com/ecosystem/usdtaps.md).

# $TAPS

## The $TAPS Token & Fee Mechanism

When you use **Taps** to deploy a token, your token will automatically be launched on **Uniswap V3**, with a built-in mechanism that supports both your new token and the main $TAPS ecosystem.

***

### 🔥 How It Works

Every token launched through Taps is configured with a **1% transaction tax** on all swaps.

#### 💸 Tax breakdown

* **1% tax on every swap (buy or sell)**

This tax is split into two parts:

**📈 50% in tokens**

* The token portion (0.5% of the transaction) is **automatically burned**, reducing supply of your token forever.

**💰 50% in ETH**

* The ETH portion (0.5% of the transaction) is split further:
  * **50% to the creator** — goes directly to the deployer wallet, and can be claimed as passive income.
  * **50% used to buy $TAPS**, and those $TAPS tokens are **burned**, reducing the $TAPS supply and supporting its price.

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### ♻️ Why this matters

* 🟢 **Deflationary for $TAPS:** Every swap from any Taps -launched token continuously burns $TAPS.
* 🟢 **Deflationary for your new token:** Your token supply is constantly reduced, helping create scarcity.
* 🟢 **Rewards for creators:** As a creator, you receive ETH fees directly to your wallet, incentivising you to promote and grow your token.
* 🟢 **Sustainable flywheel:** The more tokens launched and traded, the more $TAPS is burned, strengthening the entire ecosystem.

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### ⚖️ Fee flow diagram

> **Example on a single swap:**

1. **1% total tax collected.**
2. **0.5% in your token burned permanently.**
3. **0.5% in ETH split:**
   * 0.25% ETH goes to you (the token creator), claimable anytime.
   * 0.25% ETH buys $TAPS on the open market and burns it forever.

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### 🟡 Claiming your ETH fees

* ETH fees accumulate in a special contract.
* You can claim your portion directly inside the Taps bot at any time.

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### 🚀 $TAPS value loop

This system creates a **powerful loop**:

* More token launches and trades → more $TAPS buys → more $TAPS burns → stronger $TAPS price.

***


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