The launched token
Every launch creates a Flap Tax Token V3. It trades as an ERC-20 token while Flap handles its bonding curve, taxes, dividends, and move to a DEX pool.
The token’s perp positions run separately in its Lighter account. Trading taxes fund the vault, and strategy profits can return through buybacks and holder dividends.
Supply and launch market
A launch creates one billion tokens. The token starts on Flap’s bonding curve and moves to its DEX market at the 800-million-token threshold. Creator-buy estimates use the same curve.
Perpetuals uses Flap’s DEX0 and V2 migration path. Flap handles the pool migration and liquidity.
Before preparing a launch, the app checks that it is using the expected Flap contracts and curve setup.
Buy and sell taxes
Buy and sell taxes are set separately, so the two rates can differ. Both must stay inside the limits shown by the launch form.
The contracts cap either tax at 10% and use a nonzero minimum set in the launch settings. The final launch transaction enforces both limits.
Tax allocation
Every launch allocates 100% of its configured trading tax across four uses.
- Vault share
- Delivered to the token’s strategy vault. After conversion to USDG, this amount enters the fixed 75% strategy / 25% protocol split.
- Direct dividends
- Delivered through the token’s Flap dividend system for eligible holders.
- Deflation
- Assigned to token burn under Flap’s tax processing.
- Liquidity
- Assigned to the token’s venue-managed liquidity behavior.
The four values must total exactly 10,000 basis points, or 100%. The vault share must be at least 2,000 basis points, or 20%. This leaves a combined maximum of 80% for dividends, deflation, and liquidity.
vault share + direct-dividend share + deflation share + liquidity share = 10,000 BPS
Direct holder dividends
Direct dividends are funded from the token’s trading tax before revenue reaches the strategy vault. They are not dependent on the Lighter strategy producing a profit.
The dividend asset can be the launch quote asset, the launched token, or an approved custom ERC-20 route. Native-quote dividends resolve to wrapped native value because the dividend system accounts in ERC-20 assets.
DAO launches restrict the dividend asset to the quote asset or the launched token. This keeps the governance and dividend configuration within routes the protocol can validate deterministically.
Holder eligibility, accrual, and claiming follow the token’s Flap dividend contract.
Strategy-profit dividends are different
Strategy-profit dividends use value returned from Lighter after the settlement operation classifies principal, recovered loss, and profit. They are funded from a separate router bucket and may remain pending until a keeper performs the dividend conversion and deposit.
Both dividend streams can ultimately reach the same Flap dividend contract, but their sources and timing differ:
| Dividend source | Generated by | Depends on strategy profit | Execution |
|---|---|---|---|
| Direct tax dividend | Token trading tax | No | Flap tax processing |
| Strategy-profit dividend | Settled Lighter profit | Yes | Restricted keeper operation |
Tax duration and anti-farmer protection
The factory configures the token-tax duration independently from the anti-farmer duration. Perpetuals launches use a 100-year tax duration, making the selected tax policy effectively long-lived.
Anti-farmer protection is an optional Flap launch setting that can be configured from zero to 365 days. It is intended to restrict certain early liquidity-addition behavior.
Flap commission
The launch identifies the configured Perpetuals launchpad fee receiver as the Flap commission receiver. Flap calculates its commission internally from the effective tax configuration.
Perpetuals does not provide a separate commission-basis-point value in the launch call, so this documentation does not present a fixed commission percentage. The 25% protocol treasury share is not the Flap commission and should not be interpreted as 25% of gross trading volume.