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What is an "internal commission" token?
What is an "internal commission" token?

Everything about internal commission tokens and how they work

Matt avatar
Written by Matt
Updated over a week ago

What is an internal commission token?

An "internal commission" token is a token that, by fundamental design, takes a percentage of commission upon transfer. In other words, every time the token is moved or swapped, a pre-determined portion of the transfer amount is either burned or sent to another address.

In many cases, these internal commission tokens have legitimate logic behind them (for example sending a portion to a burn address to create scarcity for holders); however, some "scam" tokens can also use internal commission to send funds directly to the pockets of the token creators.

How can I swap these types of tokens on 1inch?

To swap internal commission tokens, it is recommended to increase the slippage tolerance in swap settings, enable the "Lowest Gas" button*, and also enable "Compatibility Mode". The amount of slippage tolerance needed is different for each token, and can vary from low amounts (like 3-5%) up to 49% or even higher.

*Lowest Gas option is available in Classic Mode only

Keep in mind, 1inch network often routes through multiple liquidity pools to achieve the best rate for a swap. If an internal commission token is being swapped without the "Lowest Gas" button enabled, the commission will be taken for each pool in the route. For example, if the token has a 10% internal commission, and there are 3 pools in the route, the total commission taken will be 30%, and the slippage tolerance will need to be at least 30% as well. Enabling "Lowest Gas" mode will ensure that your swap is only routed through one pool.

***Please keep in mind, a higher slippage tolerance increases the risk of your transaction being front-run (sandwich attacked)

***If the total / combined internal commission is higher than 49%, the token cannot be swapped on 1inch.


By increasing the slippage tolerance, you are decreasing the necessary 'minimum amount returned' to compensate for the % taken out during the transfer.

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