In this guide we’ll focus on how you can verify if a farm on the Avalanche network has implemented the transfer tax function in their MasterChef contract. Transfer tax functions are used to incentivise (governance) token holders to keep the token in their wallet. Whenever the token holder deposits, withdraws or transfers the token, they need to pay a tax on top of other fees such as transaction fees or deposit fees.
Step 1. Find the MasterChef contract address #
Before we can verify if the farm implemented the transfer tax function, we need to find it’s MasterChef contract address. These contract can usually be found on the farm’s doc page or on our website rugdoc.io. Please read this guide for more information about how to find a MasterChef contract. In this example, we will be using Emoji Swap’s MasterChef.
Step 2. Open the MasterChef contract #
Now that you have found the MasterChef contract address, open the Avalanche block explorer and paste the MasterChef contract address in the search bar and hit enter.
Step 3. Look for the transfer tax function #
Open the MasterChef contract and select the ‘Code’ tab.
Find the ‘Contract Source Code’ section. Click inside the code box and press Ctrl+f. In order to find the transfer tax function, use one of the following keywords: ‘tax’, ‘transfer’ or ‘transfertax’.
You can conclude from the code that, in Emoji Swap’s case, there’s a 5% transfer tax present for it’s governance token.
uint internal _transferTaxRate = 5000; // 5%
Great job! You now know how to verify if a farm has implemented a transfer tax function. If you found this guide helpful, share it on social media!
