Vault explained

This page applies to tokens that use the "trading tax flows into a vault, then funds dividends or ecosystem allocation" model. Exact tax rates, distribution assets, settlement frequency and how to claim are governed by each project's contract rules and official announcements.

To first understand how IGNIX splits tax between the creator and holders, read Tax & dividends.

1. How the vault accumulates

When users buy, sell or transfer the token, the contract charges a trading tax at the configured rate. The tax typically enters the vault in one of these ways:

1. Accumulate the token directly: the tax is stored in the vault as the project token.
2. Convert then accumulate: the tax is first swapped into a stablecoin, the chain's native coin or another designated asset, then stored.
3. Split by purpose: the tax is split by ratio into separate buckets — dividends, liquidity, operations, buyback or burn.

So the vault balance comes mainly from ongoing on-chain trading. The higher the volume and the applicable rate, the faster it usually accumulates.

2. The distribution flow

Vault funds are typically processed in this sequence:

1. A user buys, sells or makes an eligible transfer.
2. The contract automatically deducts the trading tax and deposits it into the vault.
3. Once a settlement condition is met, the system withdraws part of the vault's assets. How much depends on the token reserves in the official pool, how many settlements have already run that day, the amount of newly generated tax, and market trades and pool-liquidity changes.
4. If needed, the system swaps the project token into the designated dividend asset.
5. The dividend asset enters the dividend contract or distribution account.
6. The system computes each user's distributable share per the project rules.
7. Users generally receive dividends automatically.

What is the settlement condition? It is defined by the project's contract rules; only once the condition is met does the system withdraw assets from the vault for processing.

How much is withdrawn each time? The general formula is:

Amount processed per run = min(available vault balance, per-run cap set by the contract)

The vault is usually not sold off all at once, because a large swap can cause slippage and price impact.

3. How it is distributed

Vault funds may be distributed in one or more of these ways. If the project uses holder dividends, the common calculation is:

User dividend = total distributable this round × user's eligible holdings ÷ all users' eligible holdings

Here, "eligible holdings" typically exclude the trading pool, the vault, the token contract, the burn address and other project-designated addresses.

The final amount a user receives is also affected by:

• The user's actual holdings and how long they've held;
• The total tax generated this round;
• The vault's settlement frequency and amount processed per run;
• The market price and liquidity at the time of conversion;
• The minimum holding and minimum claim thresholds set by the project;
• Whether there is any lockup, linear release or claim fee.

Additional notes

The trading tax is deducted automatically by the contract when users buy, sell or make an eligible transfer, and flows into the project vault. Once a settlement condition is met, the system processes the assets per the project rules — for example converting into the dividend asset, adding liquidity, buying back, burning or funding ecosystem operations.

If used for holder dividends, the amount is typically calculated by each user's eligible holdings as a share of all eligible holdings. The vault balance is a pending asset and does not equal claimable dividends; actual timing and amounts follow the contract's settlement progress and the project rules.

Risk notes

• Tax rates, vault permissions and how funds are used should be verified against the on-chain contract.
• A vault address holding a large amount of tokens does not mean those tokens will be sold all at once.
• If the vault is admin-controlled, watch whether the admin can change the tax rate, move assets or alter the distribution rules.
• Token conversion can cause price impact, slippage and failed transactions, so the actual dividend amount may vary.