Fees and burns
Launching is free
There is no platform fee to create a token. You pay network gas and nothing else. The pool opened in the same transaction carries no creation charge either.
When you see "zero-fee minting" in the app, that refers to minting only. Trading carries a fee on most token types.
What a trade costs
How much you pay per trade depends on the type the creator chose at launch. Two types charge 1% of every buy and every sell, in both directions. One charges nothing at all.
| Trade fee | Creator | Burned | Platform | |
|---|---|---|---|---|
| Auto-Burn | 1% | 0.4% | 0.3% | 0.3% |
| Standard | 1% | 0.7% | none | 0.3% |
| Tax-Free | 0% | none | none | none |
The type is fixed at launch and can never change. Each token page shows which one it is, in the Token info panel.
This is the fee for the life of the token. There is no second phase with different numbers. Older launchpad designs, including an earlier version of this one, charged one fee on a bonding curve and a different one in the pool afterwards; a token launched straight into its pool has only ever one.
Where the fee comes from
It is the pool's own Uniswap swap fee — the ordinary fee any Uniswap pool charges, set when the token launched.
What makes it Honkfun's to split is that Honkfun is the pool's only liquidity provider, and permanently: the whole supply is placed at launch and the position is locked forever. So every fee the pool collects accrues to that one position, and the locker divides it between the creator, the burn and the treasury.
Nothing skims the trade on its way past. The pool charges what the table says, and the split happens later, when someone collects.
Tax-Free is a pool that charges zero. Uniswap V4 has no fixed list of fee tiers, so zero is a real setting rather than the nearest cheap one. That is why a Tax-Free token is free for its whole life, and why it produces nothing at all for anyone.
Tax-Free in one line
You trade it for free, and nobody earns anything from your trade. Not the creator, not the burn, not Honkfun.
That is the whole point of the type, and the whole cost of it too: a creator who picks Tax-Free is choosing to earn nothing from trading, forever, and the token gets no burn either. It is for a creator who wants the cheapest possible market for holders and takes nothing out of it. See Creator rewards before choosing it.
A worked example
You buy 1 ETH of an Auto-Burn token.
- 0.01 ETH is taken by the pool as its fee.
- Of what the pool collects, 0.4% of the trade is the creator's, 0.3% the treasury's, and 0.3% the burn's.
- Those shares are paid out when someone runs a collection, not on your trade.
On a Standard token there is no burn: 0.7% to the creator and 0.3% to the treasury.
On a Tax-Free token nothing is taken at all.
The quote in the trade panel is already net of the fee, so what it shows is what you get.
What gets burned
Fees accrue in both assets, because trades go both ways: some of what the pool collects is the token, and some is ETH.
The burn comes out of the token side. Auto-Burn's 0.3% share of the collected token is destroyed outright — no buying, no selling, the supply simply falls. Total supply genuinely drops, so every explorer and price feed sees it.
The ETH side pays the creator and the treasury. None of it is burned.
That last point is a deliberate change from how this worked before, and it is worth being straight about. Under the older design the burn also took a share of the ETH and used it to buy the token back and destroy that too — a second burn, funded by ETH. Doing that requires the protocol to trade against its own pool, and on Uniswap V4 there is no per-pool price oracle to bound such a trade against. An unbounded one, in a function anybody can call, is an invitation to whoever is willing to move the price first. So it is gone, and the ETH it used to spend goes to the treasury instead.
What it means for you: an Auto-Burn token burns less than it used to, and what it does burn is safer. Only Auto-Burn burns at all — Standard pays its whole share to the creator, and Tax-Free takes no fee to burn from.
Collecting them
Fees do not distribute themselves. They accrue in the pool, and somebody has to sweep them — and anyone can: press Run Collect & Burn on a token's page, or use the Keeper page, which lists every token with what is waiting.
The caller pays gas and receives nothing. The function takes no address arguments at all, so there is no way to redirect a single wei of it. When it runs:
- the position's accrued fees are pulled in;
- each share is worked out from the percentages that token snapshotted at launch;
- on an Auto-Burn token, the burn's share of the token side is destroyed;
- the treasury is paid, and the creator's share is set aside for them to claim.
Collection only runs once enough has accrued to be worth the gas. Below that the transaction reverts harmlessly. Nothing is lost while it waits.
Where you can watch all of this
Two public pages, both built from indexed on-chain data:
- Fees. Every fee event as it happens: trade fees, burns and creator claims, each linked to its transaction. Headline totals for platform earnings, creator payouts and tokens burned.
- Burns. Supply destroyed, forever. All-time totals, a per-token leaderboard, and the live burn feed.
Can the fees change?
The protocol governance can adjust the splits, but only for tokens launched afterwards. Every token snapshots its terms at the moment it is created and keeps them for life. A token you bought yesterday cannot have its fees raised today.
Tax-Free's 0% is not even a setting. It is written into the type itself, so there is no value an operator could change that would put a trade fee on a Tax-Free token.
The contract also caps how high the fee can ever be set for future launches, so no configuration change can turn a launch into a fee trap.
Where it all ends up
The platform's share of trades, and the ETH side of everything collected, land in a single treasury address, published on Network and addresses.