How EXIT works

EXIT is a deflationary token with a built-in genesis event. Fees start high and decay with every block. A Uniswap V4 hook collects taxed tokens until it accumulates enough to burn ~50% of the supply — then burns them in one shot. That's not the end. That's where the real life of the token begins. 0/0 tax, half the supply, open market. Here's how every piece fits together.

STEP 01Buy tax — the entry fee

Every purchase of $EXIT is subject to a buy tax. The tax starts at 15% and decreases by 1% every 10 blocks. At block 150 it reaches 0% and stays at zero until the burn event.

The tax is taken in tokens — if you buy 1000 $EXIT at 15% tax, the hook takes 150 tokens and you receive 850. Those 150 tokens go straight to the hook's accumulation balance.

Early buyers pay higher tax but get the lowest entry price. Late buyers pay less tax but a higher price. The market finds its own equilibrium.

STEP 02Sell penalty — the cost of panic

Selling $EXIT outside an EXIT window costs you. The sell penalty starts at 50% and drops by 10% every 50 blocks, settling at a final rate of 5% from block 250 onward.

This is the core mechanic. If you sell 1000 tokens at 50% penalty, the hook takes 500 of them. You walk away with ETH for only 500 tokens. The hook keeps its cut and never gives it back.

Your impatience feeds the burn. Every token taken as penalty accelerates the path to 0/0.

STEP 03EXIT window — the free door

Starting from block 10, every 10th block opens an EXIT window. During this single block, sell tax drops to 0% — but there's a catch. Only a limited number of sells can go through. First come, first served.

The window starts with 5 spots. Every 50 blocks the capacity increases by 5, capped at 30. Combined with anti-dust: a sell qualifies for the free slot only if it is at least 0.01% of the pool's TOKEN reserves. Smaller sells pay the regular penalty even inside the window.

The EXIT window is where the name comes from. Patience gets you a free exit. Panic costs half. Dust gets nothing — the door opens for real sells, not for spam.

STEP 04The hook — the accumulator

The hook is a Uniswap V4 smart contract that sits between every trade. It enforces the tax schedule, manages EXIT windows, and most importantly — accumulates tokens.

Every token collected from buy tax and sell penalty goes into the hook's balance. It sits there, growing, block after block, trade after trade. The hook has one goal: reach 999,000,000 EXIT (≈ 50% of total supply).

The hook balance is visible on-chain at all times. Anyone can check how close it is to the target. There is no admin function, no override, no pause. The hook simply counts and waits.

What feeds the hook

STEP 05The burn — the beginning

The moment the hook balance reaches the 999M target, the burn triggers. This isn't the finale — it's the foundation. Everything before the burn is construction. The burn is the grand opening.

Three things happen simultaneously — and the token's real life begins:

1. The hook calls token.burn(), which destroys exactly enough tokens to land the total supply on a clean 1,000,000,000 EXIT. The burned tokens are gone — irrecoverable. They never belonged to anyone and no function existed to withdraw them.

2. Buy tax and sell penalty are both set to 0%. Permanently. No more fees, ever. The token is free.

3. EXIT windows are disabled — they're no longer needed. Every block is now a free exit. The construction is over. The building stands.

The burn is not a promise. It's code. When the hook balance crosses the threshold, the function executes inside the same swap that pushed it over. No multisig, no governance vote, no delay. Math.

STEP 06The phases

The token's life splits into three distinct phases, each with different economics.

STEP 07Protection

What stops anyone — including the deployer — from messing with the system after launch?

Immutable everything

The Token, the FeeHook, the tokenomics constants — all immutable Solidity. No proxy, no upgrade, no setOwner(), no setFee(). The schedule is computed live from block.number - startBlock. The burn condition is a single if on the hook's own token balance. There is nothing to flip.

Canonical pool lock

The hook permanently records the first pool it gets initialized with (canonicalPoolId). Any swap routed to the hook for a different pool reverts. Pool initialization itself is locked behind the deployer and can only happen once — re-init reverts with AlreadyInitialized.

Burn is hook-only

The Token's burn() function checks msg.sender == hook. No one else can burn — not the deployer, not a holder, not the hook's logic outside the trigger. The only path to a burn is hook balance reaching 999M during a swap.

Fee tokens go to the hook, not anyone

Every taxed token is taken via poolManager.take(token, hook, amount) — pulled directly to the hook contract. There is no withdraw, transfer, or owner-callable function on the hook. The only operation it can perform on its own balance is token.burn() when the threshold is hit.

Note: tax applies to the canonical V4 pool only. The deployer mints 100% of supply at launch and seeds liquidity exclusively into that pool, so any third-party pool would have to bootstrap its own liquidity from scratch — which is possible but economically pointless given that the entire float lives on the taxed venue.

Quick reference