Variable taxes refers to a smart contract function that essentially allows contract owners of token to impose taxes on buying, selling, or even transferring of the token after the token smart contract has been deployed.
The following table portrays a few examples of variable taxes on smart contracts which can be seen on contract explorers:
Variable Tax Rate function names come in all forms but serve the same purpose - to allow the contract owners to change the buy, sell, or even transfer tax of a token.
While not all projects or tokens with this function are deemed as bad actors, having this function on the contract opens up the possibility for the contract owners to do so leading to potential Honeypot Scams.
CoinGecko has zero tolerance for bad actors in the cryptocurrency space and treats every token with a variable tax function as potentially dangerous. All such tokens will have a notice on the token pages indicating that our due diligence team has found the token to contain the variable tax rate function.
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