Meteora is introducing to the mememcoin universe M3M3 — a.k.a meme (3,3) — a new stake-to-earn mechanism where top memecoin stakers compete to earn fee rewards from permanently-locked liquidity!
As a highly-configurable mechanism that can be used by launchpads, creators, and holders, we believe M3M3 has the potential to greatly incentivize both staking and trading, and in turn bring more sustainable revenue and dynamics to memecoins. M3M3 is currently in beta.
Memecoins are in a Race to Dump
Currently, it is very challenging for most memecoins to reach a decent market cap. According to DEX Screener (as of 29 November 2024), out of the memecoins on Solana, only ~700 (0.05%) have surpassed $1M Market Cap and ~200 (0.016%) have surpassed $20M Market Cap.
Moreover, only 555 / 44,182 (1.26%) of memecoins managed to graduate from pump.fun by reaching a market cap of ~$69,000.
This is not surprising, given that memecoins are often a race to dump, especially in the early days, where every holder has a constant fear of being dumped on by others. Initial holders are afraid of creators selling allocation, while new holders are wary of initial holders, snipers, and insiders who bought in at a highly advantageous price. As such, many don’t see any value in holding for long and attempt to profit at the earliest opportunity after launch, causing a bleak trading chart and undermining potential growth.
This PvP (Player vs. Player) environment ends up creating a toxic cycle that discourages holding and presents a serious risk to the long-term future of memecoins.
By offering fee rewards to stakers, M3M3 aims to be a sustainable mechanism that gives holders a reason to hold, so more memecoins last longer and reach a higher market cap.
How M3M3 Works
Whether as a memecoin holder right from launch or a new holder just entering the game, M3M3 offers a unique opportunity to earn fee rewards through staking. Here’s how it works:
Top Stakers Earn Fee Rewards
If you are going to hold the memecoin anyway, you can stake it to earn fee rewards. Only top memecoin stakers (e.g. Top 100 stakers) are eligible to earn fee rewards from the associated liquidity pools. In addition, the higher your stake, the larger your share of the fee rewards generated by the permanently-locked liquidity. This competitive element incentivizes users to secure a ranked position and buy & stake more to increase and maximize their fee rewards. Note that the actual memecoin has to be staked and not an LP token, so there’s no risk of IL (impermanent loss).
Dynamic Competition for Fee Rewards
If a staker falls out of the rankings (e.g. out of Top 100), they immediately stop earning fee rewards. This mechanic ensures that participants stay committed to staking in order to retain their fee rewards. As more participants seek to rank in the leaderboard, competition grows, driving a higher demand for the memecoin.
Real-Time Earning — Stake More, Earn More!
M3M3 operates in real-time. As you stake more, you instantly earn more fee rewards per block that you can manually claim later, providing an engaging experience for stakers who want to see returns on their stake.
Claim SOL Rewards, Restake Memecoin Rewards for Compounding
Top stakers earn fee rewards in a combination of SOL and memecoins. SOL can be manually claimed right away, but the memecoin portion of the claimed fee gets added to your stake, compounding earnings while mitigating sell pressure. This dual reward structure — claiming SOL right away combined with restaking memecoin fee rewards makes it convenient for stakers to get rewarded without adding sell pressure to their holdings.
Cooldown Period for Unstaking
Staked memecoins must go through a cooldown period (customizable at M3M3 creation, minimum 6 hours) where the stakers must wait before they can withdraw their memecoins. Any memecoins undergoing this cooldown period do not count towards your staked memecoins and potential fee rewards. If users change their mind, they may cancel anytime and their memecoins will immediately restake and count towards earning fee rewards if they are a top staker.
M3M3 is (3,3)
M3M3 is inspired by the (3,3) model where if all holders stake then everyone wins. If everyone sells then everyone loses which can happen often with memecoins. M3M3 introduces a mechanism to incentivize people to stake so everyone can win.
(3,3) Everyone wins when everyone stakes
The M3M3 Flywheel
Transforming Trading Fees to Rewards for Stakers
Building on top of Meteora’s dynamic fees on permanently locked liquidity, M3M3 can generate attractive staking rewards from these fees to incentivize memecoin staking.
Leaderboard Competition to Earn Fee Rewards Generates More Fees
As stakers compete for fee rewards this can generate more trading volume which increases M3M3 fee rewards, which, in turn, may attract additional stakers to enter the M3M3.
More Stakers, Less Sell Pressure, More Value
With more stakers due to the higher fee rewards, there is less sell pressure for the memecoin, which can also make memecoin fee rewards more valuable!
We hope this M3M3 flywheel transforms memecoins from a race to dump to a race to stake, increasingly driving more value to stakers to attract more staking for the benefit of all holders.
Using M3M3 is akin to a Second Launch for Memecoins
Creators can configure when fee rewards become claimable after their TGE (token generation event), setting up a countdown period during which total fee rewards accumulate to be distributed later.
This growing pot of rewards may attract users to buy & stake and trigger more competition once the M3M3 kicks off the fee reward earnings for stakers. Consequently, the race to secure a spot among the top stakers may spark excitement and trading activity similar to the memecoin’s TGE.
M3M3 Provides Creators with an Automated Staking Mechanism
M3M3 is a hassle-free solution that creators can use immediately to implement an automated staking mechanism for their memecoins.
- No Extra Costs: Rewards come entirely from trading fees on permanently-locked liquidity, not from tokenomics.
- No Development Required: There’s no need to build a new program, design a UI, or handle any technical work.
- Automated Reloading of Rewards: Unlike traditional liquidity pool farms that require manual reloading of token incentives that also impact emissions, M3M3 automatically top up rewards from trading fees so creators do not have to do anything.
M3M3 is Configurable and Designed for Easy Launchpad Integration
Easily integrate M3M3’s staking mechanism and customize it according to your launchpad needs to support different token launch models:
- Value-additive staking mechanism: M3M3 offers a unique, value-additive staking mechanism for memecoins launching on your launchpad, without having to change your existing launch process.
- Highly Configurable: M3M3 fees are highly configurable to be aligned with your launchpad goals and needs. A % of fees can be allocated towards different actions, for example:
- Reward stakers and incentivize participation
- Taken as a launchpad fee
- Given to creators to attract more memecoin launches
- Permanently-locked for deflationary purposes
- Given to your launchpad users to incentivize any action you want
M3M3’s Configurability Adapts to All Types of Memecoins
M3M3 is a highly-configurable mechanism that allows the creation of new token launch models. Creators and launchpads can define key parameters based on their requirements:
- Fee allocation: % of fee rewards from permanently-locked liquidity to allocate to top stakers vs keeping it solely for themselves.
- Eligible stakers: Number of stakers who will receive fee rewards (e.g. Top 100 stakers)
- Unstake cooldown: Time period before staked memecoins can be withdrawn for users who unstaked (minimum 6 hours)
- Fee distribution duration: Time period over which fee rewards are distributed (minimum 7 days)
- Fee unlock start time: When fee rewards will start unlocking for stakers (immediate or at a custom time)
First M3M3 Launch: $M3M3
The first memecoin to debut on the M3M3 platform is $M3M3 by https://x.com/WEAREM3M3_ !
$M3M3 was created by a passionate community of folks who believe in M3M3’s approach to change the current memecoin dynamics and make memecoins less PVP. Their aim for $M3M3 is to bring together people and projects who share the M3M3 vision.
As the first project on the M3M3 platform, $M3M3 will also put the system to the test and showcase how memecoin holders are able to buy, stake, and earn fees from locked liquidity. This would demonstrate M3M3’s full potential as a new mechanism for memecoin launches.
We are M3M3
We believe M3M3 is a game-changer and hope it can transform memecoin dynamics through powerful incentives to align individual actions so that everyone can win. By breaking the traditional PvP cycle, we hope to set the stage for a new era of memecoin dynamics, where loyal holders help create a more beneficial market for everyone and contribute towards sustainable growth.
If you’re a launchpad that wants to integrate the M3M3 system, or a team looking to launch a M3M3 for your memecoin, come talk to us! We would love to get your feedback so we can improve. Followthe community telegram!
Join the LP Army to stake and earn together and let’s usher in a new bullish era for Memecoins!
