BurnDividend Vault
The BurnDividend Vault combines two mechanisms in a single lifecycle: it starts with automatic buyback & burn (like SnowBall), then transitions into a dividend model where holders can burn their tokens to earn a proportional share of future tax revenue.
Two-Phase Lifecycle
Phase 1: Buyback Mode (Automatic)
Tax Revenue (ETH) → Vault → Auto Buyback & BurnWhen the Vault is first created, it operates in Buyback mode:
Tax revenue flows into the Vault.
When the balance reaches the threshold (0.025 ETH), the Vault automatically executes a buyback — purchasing and burning tokens.
Buybacks are triggered automatically as ETH arrives, with no Keeper Bot intervention needed.
If a buyback fails, the funds stay in the Vault and the next incoming deposit will retry.
This phase reduces the token's circulating supply, similar to the SnowBall Vault.
Phase Transition
The transition from Buyback to Dividend mode is triggered by the first user burn:
Any holder calls the burn function for the first time.
The Vault automatically uses all remaining ETH for one final buyback & burn.
The Vault switches to Dividend mode. This transition is irreversible.
Phase 2: Dividend Mode
Once in Dividend mode:
Burning tokens — Holders voluntarily burn their tokens to earn a share of future tax revenue. Burned tokens are permanently destroyed.
Earning dividends — All subsequent tax revenue flowing into the Vault is distributed proportionally based on each holder's share of the total burned amount.
Claiming rewards — Holders can claim their accumulated ETH dividends at any time.
How Dividends Are Calculated
Your dividend share is determined by how many tokens you've burned relative to the total amount burned by all participants:
The more tokens you burn, the larger your share of ongoing tax revenue. Dividends accumulate continuously as new tax revenue enters the Vault and can be claimed at any time.
Key Characteristics
Dual benefit — Early buybacks reduce supply (benefiting all holders), then dividends reward active participants who burn tokens.
Irreversible transition — Once Dividend mode activates, the Vault never returns to Buyback mode.
Safe claiming — If a dividend transfer fails, the funds are queued and can be claimed again later. No funds are lost.
No minimum burn — Any amount of tokens can be burned to start earning dividends.
When to Use BurnDividend
BurnDividend is ideal for tokens where:
The creator wants both deflation and holder rewards.
The community is incentivized to actively participate in tokenomics by burning.
A two-phase model (early growth via deflation → long-term rewards) fits the project's narrative.
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