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Bitrune supports deflationary Runes with per-swap tax mechanics configured at etch time. Tax rules are immutable after broadcast.

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Overview

A deflationary Rune applies a tax on swaps. The tax is deducted from the output amount and distributed across one or more configurable buckets.

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Tax Parameters

ParameterRangeDescription
buy_tax_bps0–10000Tax on BTC-to-Rune swaps, in basis points
sell_tax_bps0–10000Tax on Rune-to-BTC swaps, in basis points
  • Tax is applied after the pool fee and before the user receives the output.
  • A value of 0 disables the tax for that direction.

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Tax Distribution Buckets

Each deflationary Rune defines one or more distribution buckets. Bucket allocations must sum to exactly 10000 bps (100%).
BucketBehavior
BURNRunes are permanently removed from circulation via a Runestone OP_RETURN output.
AUTO_LPRunes are injected into the pool as single-sided liquidity.
ADDRESSRunes are sent to a configured wallet address. Maximum 3 address buckets per etch.

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Immutability

Tax rules are immutable after broadcast. Neither the etcher nor the platform can modify tax parameters or bucket allocations after the etching transaction confirms.

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Verification

A deterministic hash of the tax configuration is computed for client-side verification: 
params_hash = SHA256(canonical_json(rules))
The hash is computed from a deterministic JSON serialization (sorted keys, no whitespace) and is verifiable by any third party given the rule set.

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On-Chain Audit Tags

Tax rules can be independently verified on-chain using Tag 111 and Tag 777 audit tags embedded in the etching transaction. These tags anchor the tax configuration to the Bitcoin blockchain, allowing anyone to confirm that the published rules match the on-chain commitment. See the On-Chain Audit Tags documentation for the full verification mechanism.

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Example Configuration

buy_tax_bps:  500   (5%)
sell_tax_bps: 1000  (10%)

buckets:
  - type: BURN
    share_bps: 5000    # 50% of tax burned
  - type: AUTO_LP
    share_bps: 3000    # 30% of tax re-liquified
  - type: ADDRESS
    address: bc1q...creator
    share_bps: 2000    # 20% of tax to creator wallet

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Worked Example (sell side)

  1. User sells 10,000 Runes into the pool.
  2. Pool fee (30 bps) is applied first; AMM computes a gross BTC output.
  3. Sell tax of 1000 bps (10%) is applied to the Rune input: tax = 10000 × 1000 / 10000 = 1000 Runes.
  4. Tax distribution:
    • BURN: 1000 × 5000 / 10000 = 500 Runes permanently destroyed.
    • AUTO_LP: 1000 × 3000 / 10000 = 300 Runes added to pool reserves.
    • ADDRESS: 1000 × 2000 / 10000 = 200 Runes sent to creator wallet.
  5. User receives BTC output computed from the remaining 9,000 Runes.