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

# SnowBall Vault

The SnowBall Vault is the simplest Vault type — it takes all tax revenue and uses it to buy back and burn tokens. No dividends, no complexity. Just continuous deflation.

***

## How It Works

```
Tax Revenue (ETH) → Vault → Buyback on Uniswap V2 → Burn to 0x...dEaD
```

1. Every trade and transfer on the token generates tax (configured by the creator).
2. The tax revenue flows into the SnowBall Vault.
3. A Keeper Bot periodically calls the Vault to execute a buyback — purchasing the token from Uniswap V2 using the accumulated funds.
4. The purchased tokens are sent to the dead address (`0x...dEaD`) and permanently destroyed.

This cycle repeats as long as the token is being traded. More activity means more tax, more buybacks, and more tokens burned.

***

## Key Characteristics

* **Pure deflation** — 100% of the tax revenue allocated to this Vault is used for buyback and burn. There are no dividends or other distributions.
* **Automatic execution** — Keeper Bots handle all buyback operations. No manual action is needed from the creator or holders.
* **Transparent tracking** — The Vault tracks cumulative statistics including total funds spent on buybacks and total tokens burned.
* **Slippage protection** — Each buyback includes a minimum output check to prevent unfavorable trades.

***

## Who Benefits

All token holders benefit equally from the SnowBall Vault. As the circulating supply decreases over time, each remaining token represents a larger share of the total supply.

***

## When to Use SnowBall

SnowBall is ideal for creators who want a straightforward, set-and-forget deflationary mechanism. It works best for tokens where:

* The community values long-term supply reduction.
* The creator wants a simple, transparent tokenomics model.
* No dividend or reward distribution is needed.