Together with DEXScreener’s Moonshot, Meteora is introducing a new meta for memecoin launchpads where both creators and holders can perpetually earn trading fees from permanently locked liquidity, creating true community-owned memecoins.
Problems with the Current Memecoin Playbook
CTOs (community takeovers) are rampant because the current model of pump, dump, and run is the easiest way for creators to make money. This makes it dramatically harder for holders to support a memecoin project and build a community in the long run. This fundamental misalignment between creators and holders is one reason very few memecoins last.
Additionally, memecoin creators have lost access to one of the most important revenue sources by permanently locking liquidity to give traders confidence in their token. According to Keyrock, the top memecoins have lost almost $300M in fees to locked liquidity. If you include the long tail of tokens, it is estimated that over half a billion dollars in fees have been lost in total.
Source: Keyrock
Ushering in a New Meta for Memecoins
By enabling fees to be claimed on locked liquidity, Meteora has created royalty-like revenue streams for creators. Creators can again focus on driving attention to their tokens to grow their revenue. They no longer need to be sophisticated traders nor have a large treasury to tap into in order to fund themselves. This will bring greater alignment between holders and creators and allow more memecoins to flourish over the long run.
Moonshot’s Community-Owned Launches
Moonshot has integrated Meteora’s Memecoin Pools to leverage these locked liquidity fees to build true community-owned memecoins. If creators choose to launch liquidity on Meteora through Moonshot, both the creators and the top holders that bought through Moonshot become co-owners in the memecoin and will earn lifetime fees on their locked liquidity!
This will give every memecoin that graduates to Meteora a larger base of stakeholders who earn more by continuing to support and grow the token even if they choose to sell their initial holdings. With this larger base, we believe Moonshot-launched memecoins will have a higher likelihood of success compared to those that launch on other launchpads.
How do fees work in Meteora’s Memecoin Pools?
Permanently-locked liquidity with claimable fees: The liquidity you add during pool creation will be permanently locked forever to help raise community confidence, but you can still earn fees on your locked liquidity. If you have the majority of liquidity in the pool you will get the most fees. Fees collected are also added back to the pool and auto-compound, so the longer you wait to claim the fees the faster your earnings will grow!
Dynamic Fee: Dynamic fees are set by the protocol and range from 0.15%-15%. This fee may be changed by the protocol over time to optimize revenue and volume for different market conditions. In addition, LPs earn lending yield from the locked SOL in the memecoin pool.
Volume Referral Fee: 20% of the dynamic fee is used as a volume referral fee that goes to integrators or trading bots that bring volume to the pool. This helps incentivize more integrations with Meteora and consequently increase volume to the pool.
Fees to creators and holders through the Moonshot Integration
Now Moonshot uses AirLock
When a token successfully migrates to Meteora, Moonshot locks the LP tokens forever and airdrop the LP rewards every 24 hours to your current Top 50 holders. More details can be found here.
Note: Previously (old model), out of the 80% of the Dynamic Fee captured by Meteora: 20% goes to the memecoin creator on Moonshot, forever, 70% goes to the initial top 50 holders, forever. Remaining 10% goes to DEXScreener
Join the new Meta
Overall, we believe this approach aligns incentives between creators and holders by turning major holders into true “owners” of the memecoin. Being able to claim fees on the locked liquidity forever, they become long-term drivers of success for the memecoins and create a sustainable revenue stream that benefits everyone in the long run.
Typical launchpads only help creators transition from memecoin creation to building a holder base that just engages in trading for profit. Moonshot and Meteora allow creators to build an “owner” base that directly incentivizes growth in the long run. The greater the attention, the greater the trading volume, the more more fees earned for creators and holders!
This powerful shift means there’s no longer a need for pump and dump — creators and holders can simply focus on building and growing the community which we believe will make the memecoin space more sustainable in the long run.
