> For the complete documentation index, see [llms.txt](https://bread-5.gitbook.io/bread/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bread-5.gitbook.io/bread/getting-started/how-it-works.md).

# How it works

### Token lifecycle

Every token on bread.hot goes through four stages:

**1. Creation**

The creator fills out the form — name, ticker, image, description, social links. Picks the launch mode (Bonding Curve or Presale).\
Signs the transaction. Token deployment is free.

**2. Curve phase (active trading)**

The token trades on a bonding curve. Price grows with every buy. Max Buy ensures no wallet can hold more than 2% of supply. Sell tax from every sell goes into buyback and burn of the same token.

Pre-migration buys are only possible through bread.hot (direct-access-only). This returns control over early supply to the product itself and reduces the edge of terminals, bundle software, and sniper bots.

**3. Graduation (migration)**

When the bonding curve collects 45 SOL, the token automatically migrates to Meteora DAMM.

**4. Post-migration (Meteora trading)**

After migration the token trades on Meteora as a regular SPL token. Max Buy is lifted. Sell tax no longer applies.

### Total supply

Each token's total supply is **1,000,000,000 (1B)** SPL tokens:

* **800M** — on the bonding curve for active trading
* **200M** — reserved for migration into Meteora

### What sets bread.hot v.1 apart

* **Max Buy 2%** — a structural cap on supply concentration at the smart-contract level
* **Direct-access-only** — pre-migration buys are routed through bread.hot only
* **15% sell tax** routes into buyback and burn of the same token
* **Migration to Meteora DAMM** with permanent LP lock
* **0 SOL** to create a token

***


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