# Vaults

Vaults are smart contracts that automatically manage the tax revenue collected from a token's trades and transfers. When a creator enables the **Tax Token** feature, they can optionally attach a Vault to control how a portion of that tax is used — whether for buyback & burn, dividends, social gifting, or multi-party revenue sharing.

Each Vault type offers a different strategy for managing the collected tax:

| Vault Type                              | Strategy        | Summary                                                                                                                                  |
| --------------------------------------- | --------------- | ---------------------------------------------------------------------------------------------------------------------------------------- |
| [SnowBall](/vaults/snowball.md)         | Buyback & Burn  | All tax revenue is used to buy back and permanently burn tokens, creating continuous deflation.                                          |
| [BurnDividend](/vaults/burndividend.md) | Burn-to-Earn    | Starts with buyback & burn, then transitions to a dividend model where holders burn tokens to earn a share of future tax revenue.        |
| [Gift](/vaults/gift.md)                 | Social Gifting  | A designated X (Twitter) account controls where tax revenue is directed. If inactive for 7 days, the vault falls back to buyback & burn. |
| [Split](/vaults/splitvault.md)          | Revenue Sharing | Tax revenue is automatically distributed among up to 10 recipients based on pre-configured percentage shares.                            |

***

## How Vaults Are Created

Vaults are created automatically when a token is launched with the appropriate tax configuration. The Vault type is selected during token creation in both **Standard** and **Advanced** modes.

Once created, the Vault type and its parameters cannot be changed.

***

## Common Concepts

### Buyback & Burn

Several Vault types use a buyback & burn mechanism:

1. Tax revenue (in the payment token, e.g. ETH) accumulates in the Vault.
2. A Keeper Bot periodically triggers a buyback — purchasing the token from Uniswap V2.
3. The purchased tokens are sent to `0x...dEaD` and permanently removed from circulation.

This creates a deflationary pressure: the more trading activity, the more tokens are burned.

### Keeper Bots

Keeper Bots are automated services that trigger Vault operations (buybacks, distributions, state transitions). They run in the background and require no action from creators or holders.

### Emergency Safeguards

All Vaults include safety mechanisms:

* **Reentrancy protection** to prevent exploits.
* **Slippage protection** on buyback operations.
* **Emergency withdrawal** for the platform to recover stuck funds without affecting user balances.
* **Token rescue** to recover mistakenly sent ERC-20 tokens (the Vault's own token cannot be rescued).


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