Fee-on-Transfer

A token-contract design where each transfer deducts a fee — typically routed to a treasury, burn address, or liquidity pool. Implementing fee-on-transfer breaks compatibility with many DeFi protocols that don't expect transfer amounts to differ from the requested amount, causing failed swaps, broken router quotes, and unexpected slippage. Fee-on-transfer tokens are common in meme coins and reflection-style projects, and are a red flag on legitimate-utility tokens because they signal either economic friction or rug-pull groundwork (fees that can be redirected by admin functions).