@bananapus/721-hook-v6 0.0.18 → 0.0.19

package/test/fork/ERC20CashOutFork.t.sol

@@ -0,0 +1,612 @@
+// SPDX-License-Identifier: MIT
+pragma solidity 0.8.26;
+
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "forge-std/Test.sol";
+
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@openzeppelin/contracts/token/ERC721/IERC721.sol";
+
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBController.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBDirectory.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBMultiTerminal.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBFundAccessLimits.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBFeelessAddresses.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBTerminalStore.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBRulesets.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBPermissions.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBPrices.sol";
+import {JBProjects} from "@bananapus/core-v6/src/JBProjects.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBSplits.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBERC20.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/JBTokens.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/libraries/JBConstants.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/libraries/JBRulesetMetadataResolver.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/structs/JBAccountingContext.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/structs/JBTerminalConfig.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/structs/JBSplit.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/structs/JBFundAccessLimitGroup.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/interfaces/IJBRulesetApprovalHook.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/core-v6/src/interfaces/IJBTerminal.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/permission-ids-v6/src/JBPermissionIds.sol";
+import {MetadataResolverHelper} from "@bananapus/core-v6/test/helpers/MetadataResolverHelper.sol";
+import {JBMetadataResolver} from "@bananapus/core-v6/src/libraries/JBMetadataResolver.sol";
+// forge-lint: disable-next-line(unused-import)
+import {mulDiv} from "@prb/math/src/Common.sol";
+
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "@bananapus/address-registry-v6/src/JBAddressRegistry.sol";
+
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/JB721TiersHook.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/JB721TiersHookDeployer.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/JB721TiersHookProjectDeployer.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/JB721TiersHookStore.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/interfaces/IJB721TiersHook.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/structs/JBDeploy721TiersHookConfig.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/structs/JBLaunchProjectConfig.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/structs/JBPayDataHookRulesetConfig.sol";
+// forge-lint: disable-next-line(unaliased-plain-import)
+import "../../src/structs/JBPayDataHookRulesetMetadata.sol";
+
+/// @notice Mock ERC20 with 6 decimals (USDC-like).
+contract MockUSDC6_CashOut is ERC20 {
+    constructor() ERC20("Mock USDC", "USDC") {}
+
+    function decimals() public pure override returns (uint8) {
+        return 6;
+    }
+
+    function mint(address to, uint256 amount) external {
+        _mint(to, amount);
+    }
+}
+
+/// @title ERC20CashOutFork
+/// @notice Fork tests for ERC-20 (USDC) cashout with JB721TiersHook: bonding curve math, fee deduction, NFT burning.
+/// @dev Run with: forge test --match-contract ERC20CashOutFork -vvv --fork-url $RPC
+contract ERC20CashOutFork is Test {
+    using JBRulesetMetadataResolver for JBRuleset;
+
+    // =========================================================================
+    // Constants
+    // =========================================================================
+
+    uint256 constant FEE = 25;
+    uint256 constant MAX_FEE = 1000;
+
+    // =========================================================================
+    // Actors
+    // =========================================================================
+
+    address multisig = address(0xBEEF);
+    address payer = makeAddr("payer");
+    address beneficiary = makeAddr("beneficiary");
+    address reserveBeneficiary = makeAddr("reserveBeneficiary");
+
+    // =========================================================================
+    // JB Core
+    // =========================================================================
+
+    JBPermissions jbPermissions;
+    JBProjects jbProjects;
+    JBDirectory jbDirectory;
+    JBRulesets jbRulesets;
+    JBTokens jbTokens;
+    JBSplits jbSplits;
+    JBFundAccessLimits jbFundAccessLimits;
+    JBFeelessAddresses jbFeelessAddresses;
+    JBPrices jbPrices;
+    JBController jbController;
+    JBTerminalStore jbTerminalStore;
+    JBMultiTerminal jbMultiTerminal;
+
+    // =========================================================================
+    // 721 Hook
+    // =========================================================================
+
+    JB721TiersHookStore store;
+    JB721TiersHook hookImpl;
+    JB721TiersHookDeployer hookDeployer;
+    JB721TiersHookProjectDeployer projectDeployer;
+    MetadataResolverHelper metadataHelper;
+    JBAddressRegistry addressRegistry;
+
+    // =========================================================================
+    // Token
+    // =========================================================================
+
+    MockUSDC6_CashOut usdc;
+
+    // =========================================================================
+    // Setup
+    // =========================================================================
+
+    receive() external payable {}
+
+    function setUp() public {
+        vm.createSelectFork("ethereum");
+
+        _deployJBCore();
+        _deploy721Hook();
+
+        usdc = new MockUSDC6_CashOut();
+        usdc.mint(payer, 1_000_000e6);
+
+        vm.deal(payer, 10 ether);
+        vm.deal(multisig, 10 ether);
+        vm.deal(beneficiary, 10 ether);
+    }
+
+    // forge-lint: disable-next-line(mixed-case-function)
+    function _deployJBCore() internal {
+        jbPermissions = new JBPermissions(address(0));
+        jbProjects = new JBProjects(multisig, address(0), address(0));
+        jbDirectory = new JBDirectory(jbPermissions, jbProjects, multisig);
+        JBERC20 jbErc20 = new JBERC20();
+        jbTokens = new JBTokens(jbDirectory, jbErc20);
+        jbRulesets = new JBRulesets(jbDirectory);
+        jbPrices = new JBPrices(jbDirectory, jbPermissions, jbProjects, multisig, address(0));
+        jbSplits = new JBSplits(jbDirectory);
+        jbFundAccessLimits = new JBFundAccessLimits(jbDirectory);
+        jbFeelessAddresses = new JBFeelessAddresses(multisig);
+
+        jbController = new JBController(
+            jbDirectory,
+            jbFundAccessLimits,
+            jbPermissions,
+            jbPrices,
+            jbProjects,
+            jbRulesets,
+            jbSplits,
+            jbTokens,
+            address(0),
+            address(0)
+        );
+
+        vm.prank(multisig);
+        jbDirectory.setIsAllowedToSetFirstController(address(jbController), true);
+
+        jbTerminalStore = new JBTerminalStore(jbDirectory, jbPrices, jbRulesets);
+
+        jbMultiTerminal = new JBMultiTerminal(
+            jbFeelessAddresses,
+            jbPermissions,
+            jbProjects,
+            jbSplits,
+            jbTerminalStore,
+            jbTokens,
+            IPermit2(address(0)),
+            address(0)
+        );
+    }
+
+    function _deploy721Hook() internal {
+        store = new JB721TiersHookStore();
+        hookImpl = new JB721TiersHook(
+            jbDirectory, jbPermissions, jbPrices, jbRulesets, store, IJBSplits(address(jbSplits)), address(0)
+        );
+        addressRegistry = new JBAddressRegistry();
+        hookDeployer = new JB721TiersHookDeployer(hookImpl, store, addressRegistry, address(0));
+        projectDeployer = new JB721TiersHookProjectDeployer(
+            IJBDirectory(jbDirectory), IJBPermissions(jbPermissions), hookDeployer, address(0)
+        );
+        metadataHelper = new MetadataResolverHelper();
+    }
+
+    // =========================================================================
+    // Launch Helper
+    // =========================================================================
+
+    /// @dev Launch a USDC-denominated project with cashout enabled.
+    // forge-lint: disable-next-line(mixed-case-function)
+    function _launchUSDCProject(
+        JB721TierConfig[] memory tierConfigs,
+        uint16 cashOutTaxRate
+    )
+        internal
+        returns (uint256 projectId, address dataHook)
+    {
+        // forge-lint: disable-next-line(unsafe-typecast)
+        uint32 currency = uint32(uint160(address(usdc)));
+
+        JBDeploy721TiersHookConfig memory hookConfig = JBDeploy721TiersHookConfig({
+            name: "TestNFT",
+            symbol: "TNFT",
+            baseUri: "ipfs://base/",
+            tokenUriResolver: IJB721TokenUriResolver(address(0)),
+            contractUri: "ipfs://contract",
+            tiersConfig: JB721InitTiersConfig({tiers: tierConfigs, currency: currency, decimals: 6}),
+            reserveBeneficiary: reserveBeneficiary,
+            flags: JB721TiersHookFlags({
+                preventOverspending: false,
+                issueTokensForSplits: false,
+                noNewTiersWithReserves: false,
+                noNewTiersWithVotes: false,
+                noNewTiersWithOwnerMinting: false
+            })
+        });
+
+        JBPayDataHookRulesetMetadata memory rulesetMetadata = JBPayDataHookRulesetMetadata({
+            reservedPercent: 0,
+            cashOutTaxRate: cashOutTaxRate,
+            baseCurrency: currency,
+            pausePay: false,
+            pauseCreditTransfers: false,
+            allowOwnerMinting: true,
+            allowSetCustomToken: false,
+            allowTerminalMigration: false,
+            allowSetTerminals: false,
+            allowSetController: false,
+            allowAddAccountingContext: false,
+            allowAddPriceFeed: false,
+            ownerMustSendPayouts: false,
+            holdFees: false,
+            useTotalSurplusForCashOuts: false,
+            useDataHookForCashOut: true,
+            metadata: 0x00
+        });
+
+        JBPayDataHookRulesetConfig[] memory rulesetConfigs = new JBPayDataHookRulesetConfig[](1);
+        rulesetConfigs[0].mustStartAtOrAfter = 0;
+        rulesetConfigs[0].duration = 0;
+        rulesetConfigs[0].weight = 1_000_000e18;
+        rulesetConfigs[0].weightCutPercent = 0;
+        rulesetConfigs[0].approvalHook = IJBRulesetApprovalHook(address(0));
+        rulesetConfigs[0].metadata = rulesetMetadata;
+
+        JBAccountingContext[] memory accountingContexts = new JBAccountingContext[](1);
+        accountingContexts[0] = JBAccountingContext({token: address(usdc), currency: currency, decimals: 6});
+
+        JBTerminalConfig[] memory terminalConfigs = new JBTerminalConfig[](1);
+        terminalConfigs[0] =
+            JBTerminalConfig({terminal: jbMultiTerminal, accountingContextsToAccept: accountingContexts});
+
+        JBLaunchProjectConfig memory launchConfig = JBLaunchProjectConfig({
+            projectUri: "test-erc20-cashout-project",
+            rulesetConfigurations: rulesetConfigs,
+            terminalConfigurations: terminalConfigs,
+            memo: ""
+        });
+
+        IJB721TiersHook hookInstance;
+        (projectId, hookInstance) =
+            projectDeployer.launchProjectFor(multisig, hookConfig, launchConfig, jbController, bytes32(0));
+
+        dataHook = address(hookInstance);
+    }
+
+    // =========================================================================
+    // Metadata Helpers
+    // =========================================================================
+
+    function _buildPayMetadata(uint16[] memory tierIds, bool allowOverspending) internal view returns (bytes memory) {
+        bytes[] memory data = new bytes[](1);
+        data[0] = abi.encode(allowOverspending, tierIds);
+        bytes4[] memory ids = new bytes4[](1);
+        ids[0] = JBMetadataResolver.getId("pay", address(hookImpl));
+        return metadataHelper.createMetadata(ids, data);
+    }
+
+    function _buildCashOutMetadata(uint256[] memory tokenIds) internal view returns (bytes memory) {
+        bytes[] memory data = new bytes[](1);
+        data[0] = abi.encode(tokenIds);
+        bytes4[] memory ids = new bytes4[](1);
+        ids[0] = JBMetadataResolver.getId("cashOut", address(hookImpl));
+        return metadataHelper.createMetadata(ids, data);
+    }
+
+    function _tokenId(uint256 tierId, uint256 mintNumber) internal pure returns (uint256) {
+        return tierId * 1_000_000_000 + mintNumber;
+    }
+
+    // =========================================================================
+    // Test 1: ERC-20 cashout returns correct amount via bonding curve at 6 decimals
+    // =========================================================================
+
+    /// @notice Pay USDC to mint 721 NFTs, cashout, verify USDC returned via bonding curve math at 6 decimals.
+    function testFork_ERC20CashOutReturnsCorrectAmount() public {
+        // Create 1 tier: 100 USDC, supply 10.
+        JB721TierConfig[] memory tierConfigs = new JB721TierConfig[](1);
+        tierConfigs[0] = JB721TierConfig({
+            price: 100e6,
+            initialSupply: 10,
+            votingUnits: 0,
+            reserveFrequency: 0,
+            reserveBeneficiary: address(0),
+            // forge-lint: disable-next-line(unsafe-typecast)
+            encodedIPFSUri: bytes32("tier1"),
+            category: 1,
+            discountPercent: 0,
+            allowOwnerMint: false,
+            useReserveBeneficiaryAsDefault: false,
+            transfersPausable: false,
+            useVotingUnits: false,
+            cannotBeRemoved: false,
+            cannotIncreaseDiscountPercent: false,
+            splitPercent: 0,
+            splits: new JBSplit[](0)
+        });
+
+        // 50% cashout tax rate (5000 out of 10000).
+        (uint256 projectId, address hook) = _launchUSDCProject(tierConfigs, 5000);
+
+        // Pay 100 USDC to mint 1 NFT from tier 1.
+        uint16[] memory tierIds = new uint16[](1);
+        tierIds[0] = 1;
+        bytes memory payMeta = _buildPayMetadata(tierIds, true);
+
+        vm.startPrank(payer);
+        usdc.approve(address(jbMultiTerminal), 100e6);
+        jbMultiTerminal.pay({
+            projectId: projectId,
+            amount: 100e6,
+            token: address(usdc),
+            beneficiary: beneficiary,
+            minReturnedTokens: 0,
+            memo: "",
+            metadata: payMeta
+        });
+        vm.stopPrank();
+
+        assertEq(IERC721(hook).balanceOf(beneficiary), 1, "beneficiary should own 1 NFT");
+
+        // Cash out the NFT.
+        uint256[] memory tokensToCashOut = new uint256[](1);
+        tokensToCashOut[0] = _tokenId(1, 1);
+        bytes memory cashOutMeta = _buildCashOutMetadata(tokensToCashOut);
+
+        uint256 usdcBefore = usdc.balanceOf(beneficiary);
+
+        vm.prank(beneficiary);
+        jbMultiTerminal.cashOutTokensOf({
+            holder: beneficiary,
+            projectId: projectId,
+            tokenToReclaim: address(usdc),
+            cashOutCount: 0,
+            minTokensReclaimed: 0,
+            beneficiary: payable(beneficiary),
+            metadata: cashOutMeta
+        });
+
+        uint256 usdcAfter = usdc.balanceOf(beneficiary);
+        uint256 reclaimed = usdcAfter - usdcBefore;
+
+        // With a single payer who is the only holder and 50% cashout tax rate:
+        // Bonding curve: base * [(MAX - tax) + tax * (count / supply)] / MAX
+        // With count == supply (sole holder cashing out everything):
+        // base * [(10000 - 5000) + 5000 * (count/supply)] / 10000 = base * 1 = base (full surplus)
+        // Then a 2.5% fee is deducted: net = surplus * (1000 - 25) / 1000
+        // surplus = 100e6, net = 100e6 * 975 / 1000 = 97_500_000 = 97.5 USDC
+        assertGt(reclaimed, 0, "should have reclaimed some USDC");
+        // The reclaim should be close to 97.5 USDC (97_500_000), accounting for potential rounding.
+        // With sole holder and count == supply, bonding curve returns full surplus minus fee.
+        uint256 expectedNetOfFee = mulDiv(100e6, MAX_FEE - FEE, MAX_FEE);
+        assertEq(reclaimed, expectedNetOfFee, "reclaimed USDC should match bonding curve minus 2.5% fee");
+    }
+
+    // =========================================================================
+    // Test 2: 2.5% fee held on ERC-20 cashout
+    // =========================================================================
+
+    /// @notice Verify 2.5% fee is held on ERC-20 cashout by checking the difference between gross and net reclaim.
+    function testFork_ERC20CashOutFeeDeduction() public {
+        // 1 tier: 200 USDC, supply 10.
+        JB721TierConfig[] memory tierConfigs = new JB721TierConfig[](1);
+        tierConfigs[0] = JB721TierConfig({
+            price: 200e6,
+            initialSupply: 10,
+            votingUnits: 0,
+            reserveFrequency: 0,
+            reserveBeneficiary: address(0),
+            // forge-lint: disable-next-line(unsafe-typecast)
+            encodedIPFSUri: bytes32("tier1"),
+            category: 1,
+            discountPercent: 0,
+            allowOwnerMint: false,
+            useReserveBeneficiaryAsDefault: false,
+            transfersPausable: false,
+            useVotingUnits: false,
+            cannotBeRemoved: false,
+            cannotIncreaseDiscountPercent: false,
+            splitPercent: 0,
+            splits: new JBSplit[](0)
+        });
+
+        // Use nonzero cashOutTaxRate so the protocol fee (2.5%) is charged on cashouts.
+        // With a sole holder (cashOutCount == totalSupply), bonding curve still returns full surplus.
+        (uint256 projectId,) = _launchUSDCProject(tierConfigs, 1);
+
+        // Pay 200 USDC to mint 1 NFT.
+        uint16[] memory tierIds = new uint16[](1);
+        tierIds[0] = 1;
+        bytes memory payMeta = _buildPayMetadata(tierIds, true);
+
+        vm.startPrank(payer);
+        usdc.approve(address(jbMultiTerminal), 200e6);
+        jbMultiTerminal.pay({
+            projectId: projectId,
+            amount: 200e6,
+            token: address(usdc),
+            beneficiary: beneficiary,
+            minReturnedTokens: 0,
+            memo: "",
+            metadata: payMeta
+        });
+        vm.stopPrank();
+
+        // Cash out.
+        uint256[] memory tokensToCashOut = new uint256[](1);
+        tokensToCashOut[0] = _tokenId(1, 1);
+        bytes memory cashOutMeta = _buildCashOutMetadata(tokensToCashOut);
+
+        uint256 usdcBefore = usdc.balanceOf(beneficiary);
+
+        vm.prank(beneficiary);
+        jbMultiTerminal.cashOutTokensOf({
+            holder: beneficiary,
+            projectId: projectId,
+            tokenToReclaim: address(usdc),
+            cashOutCount: 0,
+            minTokensReclaimed: 0,
+            beneficiary: payable(beneficiary),
+            metadata: cashOutMeta
+        });
+
+        uint256 reclaimed = usdc.balanceOf(beneficiary) - usdcBefore;
+
+        // With 0% tax + sole holder: bonding curve returns full surplus = 200 USDC.
+        // Fee = 200e6 * 25 / 1000 = 5_000_000 (5 USDC).
+        // Net = 200e6 - 5e6 = 195_000_000 (195 USDC).
+        uint256 grossReclaim = 200e6;
+        uint256 expectedFee = mulDiv(grossReclaim, FEE, MAX_FEE);
+        uint256 expectedNet = grossReclaim - expectedFee;
+
+        assertEq(expectedFee, 5e6, "fee should be 5 USDC (2.5% of 200)");
+        assertEq(reclaimed, expectedNet, "beneficiary should receive gross minus 2.5% fee");
+
+        // The terminal should still hold the fee amount (held for 28 days).
+        // Verify the terminal USDC balance is exactly the fee amount (project balance is 0 after full cashout).
+        uint256 terminalBalance = usdc.balanceOf(address(jbMultiTerminal));
+        assertEq(terminalBalance, expectedFee, "terminal should hold the fee amount in USDC");
+    }
+
+    // =========================================================================
+    // Test 3: 721 NFTs burned during ERC-20 cashout
+    // =========================================================================
+
+    /// @notice Verify 721 NFTs are burned during cashout (regardless of ERC-20 token type).
+    function testFork_ERC20CashOutBurnsNFTs() public {
+        // 2 tiers: 50 USDC and 150 USDC.
+        JB721TierConfig[] memory tierConfigs = new JB721TierConfig[](2);
+        tierConfigs[0] = JB721TierConfig({
+            price: 50e6,
+            initialSupply: 10,
+            votingUnits: 0,
+            reserveFrequency: 0,
+            reserveBeneficiary: address(0),
+            // forge-lint: disable-next-line(unsafe-typecast)
+            encodedIPFSUri: bytes32("tier1"),
+            category: 1,
+            discountPercent: 0,
+            allowOwnerMint: false,
+            useReserveBeneficiaryAsDefault: false,
+            transfersPausable: false,
+            useVotingUnits: false,
+            cannotBeRemoved: false,
+            cannotIncreaseDiscountPercent: false,
+            splitPercent: 0,
+            splits: new JBSplit[](0)
+        });
+        tierConfigs[1] = JB721TierConfig({
+            price: 150e6,
+            initialSupply: 10,
+            votingUnits: 0,
+            reserveFrequency: 0,
+            reserveBeneficiary: address(0),
+            // forge-lint: disable-next-line(unsafe-typecast)
+            encodedIPFSUri: bytes32("tier2"),
+            category: 2,
+            discountPercent: 0,
+            allowOwnerMint: false,
+            useReserveBeneficiaryAsDefault: false,
+            transfersPausable: false,
+            useVotingUnits: false,
+            cannotBeRemoved: false,
+            cannotIncreaseDiscountPercent: false,
+            splitPercent: 0,
+            splits: new JBSplit[](0)
+        });
+
+        // 50% cashout tax rate.
+        (uint256 projectId, address hook) = _launchUSDCProject(tierConfigs, 5000);
+
+        // Pay 200 USDC to mint 1 NFT from each tier.
+        uint16[] memory tierIds = new uint16[](2);
+        tierIds[0] = 1;
+        tierIds[1] = 2;
+        bytes memory payMeta = _buildPayMetadata(tierIds, true);
+
+        vm.startPrank(payer);
+        usdc.approve(address(jbMultiTerminal), 200e6);
+        jbMultiTerminal.pay({
+            projectId: projectId,
+            amount: 200e6,
+            token: address(usdc),
+            beneficiary: beneficiary,
+            minReturnedTokens: 0,
+            memo: "",
+            metadata: payMeta
+        });
+        vm.stopPrank();
+
+        assertEq(IERC721(hook).balanceOf(beneficiary), 2, "beneficiary should own 2 NFTs");
+        assertEq(IERC721(hook).ownerOf(_tokenId(1, 1)), beneficiary, "owns tier 1 NFT");
+        assertEq(IERC721(hook).ownerOf(_tokenId(2, 1)), beneficiary, "owns tier 2 NFT");
+
+        // Verify store burn counts are 0 before cashout.
+        assertEq(store.numberOfBurnedFor(hook, 1), 0, "tier 1: no burns before cashout");
+        assertEq(store.numberOfBurnedFor(hook, 2), 0, "tier 2: no burns before cashout");
+
+        // Cash out both NFTs.
+        uint256[] memory tokensToCashOut = new uint256[](2);
+        tokensToCashOut[0] = _tokenId(1, 1);
+        tokensToCashOut[1] = _tokenId(2, 1);
+        bytes memory cashOutMeta = _buildCashOutMetadata(tokensToCashOut);
+
+        vm.prank(beneficiary);
+        jbMultiTerminal.cashOutTokensOf({
+            holder: beneficiary,
+            projectId: projectId,
+            tokenToReclaim: address(usdc),
+            cashOutCount: 0,
+            minTokensReclaimed: 0,
+            beneficiary: payable(beneficiary),
+            metadata: cashOutMeta
+        });
+
+        // Verify NFTs are burned.
+        assertEq(IERC721(hook).balanceOf(beneficiary), 0, "all NFTs should be burned");
+        assertEq(store.numberOfBurnedFor(hook, 1), 1, "tier 1: 1 NFT burned");
+        assertEq(store.numberOfBurnedFor(hook, 2), 1, "tier 2: 1 NFT burned");
+
+        // Verify ownerOf reverts for burned tokens (ERC721 standard behavior).
+        vm.expectRevert();
+        IERC721(hook).ownerOf(_tokenId(1, 1));
+
+        vm.expectRevert();
+        IERC721(hook).ownerOf(_tokenId(2, 1));
+    }
+}