> For the complete documentation index, see [llms.txt](https://docs.fwastr.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fwastr.fun/the-loop.md).

# The Loop

Every FWASTR trade feeds a cycle that ends in burned supply.

```
TRADE ──► 10% TAX ──► ETH ──► $FWA BAG (0.1 ETH)
                                    │
                                    ▼
                              LISTED AT 1.2x
                                    │
                                    ▼
                            BUYER PAYS 0.12 ETH
                                    │
                                    ▼
                        BUY BACK & BURN $FWASTR
```

#### **Where the Tax goes**

<table><thead><tr><th width="153.542236328125">Split</th><th>Purpose</th></tr></thead><tbody><tr><td><strong>9%</strong></td><td>Converts to ETH, buys $FWA bags</td></tr><tr><td><strong>1%</strong></td><td>Funds Chainlink VRF for Vault rolls</td></tr></tbody></table>

Wallet-to-wallet transfers are untaxed. The 10% applies only to buys and sells on the FWASTR pair.

**The tax cannot be changed.** There's no fee setter in the contract.

#### **Buying $FWA**

Fees accumulate in the contract. Once enough has built up, FWASTR converts it to ETH and buys FWA in fixed **0.1 ETH bags** from a single hardcoded Uniswap V4 pool.

The FWA is held as an internal claim inside Uniswap's PoolManager rather than sitting in the contract as a normal balance. Why that matters is covered in **Delivery**.

Bags are bought automatically as fees allow. Up to **10 bags** can be acquired in a single batch.

***

#### **Listing and Selling**

Every bag lists at **1.2x its cost:** 0.12 ETH against a 0.1 ETH purchase price.

Any buyer can purchase a listed bag at that price. They pay ETH, they receive FWA. That transaction is what completes the loop.

***

#### **The Burn**

When a bag sells, the full 0.12 ETH is used to buy FWASTR on the open market and send it to the dead address.

Not held. Not redistributed. Burned.

Each completed cycle:

* Converts trading activity into FWA inventory
* Sells that inventory at a 20% markup
* Uses 100% of the sale proceeds to permanently remove FWASTR from circulation

***

#### **What this means over time**

The loop is self-reinforcing while trading continues. More volume means more tax, which means more bags, which means more burns when those bags sell.

It's also honest about its dependency: **the loop only turns when bags actually sell.** Unsold inventory sits as FWA claims in the contract until a buyer takes it. FWASTR accumulates FWA either way, but the burn only fires on completed sales.