Melt the butter in a small saucepan over low heat. Avoid high heat to prevent the butter from separating.
Add the hot sauce and whisk gently until the butter and sauce combine into a smooth mixture.
Stir in honey, apple cider vinegar, garlic powder, onion powder, smoked paprika, and salt.
Continue heating on low for 2–3 minutes while stirring occasionally until the sauce becomes glossy and well blended.
Taste the sauce and adjust the flavor if needed. Add more honey for sweetness, more hot sauce for extra spice, or a splash of vinegar for more tang.
Remove from heat and let the sauce rest for a few minutes before serving.
Toss with cooked chicken wings, drizzle over sandwiches, or use as a dipping sauce.