# Examples

* Example 1:*
Person X

**buys or sells**1,000,000 VACU tokens (0.1% of the circulating supply). Since this transaction size falls between 0.005% and 0.5% of the circulating supply, X's transaction would incur a tax rate somewhere between 3% and 30%. The exact rate would depend on where 0.1% falls within that range.

* Example 2:*
Person Y wants to

**buy**50,000,000 VACU tokens (5% of the circulating supply). Because this transaction size exceeds 0.5% of the circulating supply, it would be subject to the maximum tax rate of 30%. So out of the 50,000,000 tokens Y is purchasing, 15,000,000 (30%) would be taken as tax and the remaining 35,000,000 would be credited to Y's wallet.

* Example 3:*
Person Y wants to

**sell**50,000,000 VACU tokens (5% of the circulating supply). Because this transaction size exceeds 0.5% of the circulating supply, it would be subject to the maximum tax rate of 30%. So out of the 50,000,000 tokens Y is selling, 15,000,000 (30%) would be taken as tax and the remaining 35,000,000 would be swapped to ETH.

* Example 4:*
In the first 20 minutes after launch, the tax rates are multiplied by 3x. So if Person Z tries to

**buy or sell**500,000 VACU tokens (0.05% of supply) in that initial hour, instead of a 3% tax, they would face a 9% tax (3% base rate x 3.0 multiplier).

**Example 5:**

If Person W attempts to **buy** 50,000,000 VACU tokens (5% of the circulating supply) during the first hour of trading after launch, they would face the maximum tax rate of 90% (30% base rate x 3.0 multiplier). Out of the 50,000,000 tokens W is trying to purchase, 45,000,000 (90%) would be taken as tax, and only 5,000,000 would end up in W's wallet. The TX would likely fail way before that as you'd need to set slippage to 90%, with Uniswap only supporting a max slippage of 50%.

**Example 6:**

If Person W attempts to **sell** 50,000,000 VACU tokens (5% of the circulating supply) during the first hour of trading after launch, they would face the maximum tax rate of 90% (30% base rate x 3.0 multiplier). Out of the 50,000,000 tokens W is trying to sell, 45,000,000 (90%) would be taken as tax, and only 5,000,000 would be swapped to ETH. The TX would likely fail way before that as you'd need to set slippage to 90%, with Uniswap only supporting a max slippage of 50%.

Example **5** and 6 illustrate the strongly prohibitive nature of the tax structure in those 20 minutes, which is designed to prevent large buy-ins that can destabilize the token's price, especially from so called Snipers. The multiplier will reset to 1x after the first 20 minutes to avoid overly punishing users once the initial launch phase is complete.

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