In this guide we will show you how to verify if a farm on the Binance Smart Chain has a transfer tax function in place for its governance token. By implementing a transfer tax function, investors are incentivised to HODL the (governance) token of the farm in their wallet rather than spending it. Transfer taxes usually apply for transferring, buying and selling of the governance token.
Step 1. Find the MasterChef contract address #
Locate the MasterChef contract address of the farm of interest. The MasterChef contract address can either be found on the farm’s website or, if the farm is reviewed by our team, on our website rugdoc.io. Make sure to double check if farm is still using the same MasterChef contract as the one we reviewed. If you’re not sure how to find the MasterChef contract address, check out this guide.
Step 2. Open the MasterChef contract #
In this guide we will use CloudCatFarm’s MasterChef. Open the BSC block explorer and paste the MasterChef contract address inside the search bar and click on search.
Step 3. Look for the transfer tax function #
Open the MasterChef contract and click on the ‘Contract’ tab. Then click on ‘Code’.
Scroll down to the ‘Contract Source Code’ section. Click on the code box and press Ctrl+f. In order to locate the transfer tax function, you can use one of the following keywords: ‘tax’, ‘transfer’ or ‘transfertax’.
CloudCatFarm’s MasterChef shows that there’s a default 5% transfer tax present for it’s governance token, with a maximum of 10%. Here’s the highlighted code:
// CloudCatFarmToken with Governance.
contract CloudCatFarmToken is BEP20 {
// Transfer tax rate in basis points. (default 5%)
uint16 public transferTaxRate = 500;
// Burn rate % of transfer tax. (default 20% x 5% = 1% of total amount).
uint16 public burnRate = 20;
// Max transfer tax rate: 10%.
uint16 public constant MAXIMUM_TRANSFER_TAX_RATE = 1000;
Great job! You now know how to verify if a farm has implemented a transfer tax function for its governance token. If you found this guide helpful, make sure to share it on social media.
