Meteora, DexScreener Reimagine Meme Coin Meta as pump.fun Sentiment Sours

Solana’s abundant meme coin market stands on the brink of implosion. The sheer volume of daily meme coin launches has saturated markets and fragmented liquidity across the DeFi landscape.

Aiming to align incentives between creators and holders, Meteora joins forces with DexScreener to provide a unique new approach to meme coin launches.

Exposing the Flaws in Solana’s Meme Coin Meta

According to Meteora, a popular Solana liquidity protocol, the existing meme coin meta is plagued with exploitative creators. Platforms like pump.fun, while bringing thousands of users to Solana, have facilitated a wrath of pump-and-dump token launches.

Through insider trading and the prevalence of supposed ‘CTOs’ (Community Takeovers), malicious actors are able to extract maximum liquidity from traders in a vicious cycle.

Additionally, enormous wealth is being lost to inaccessible liquidity pools. Once considered a valuable source of revenue for crypto projects, trading fees now sit untouched in locked pools. 

Keyrock estimates that $300M in collected fees has been lost, with this figure estimated to be over half a billion dollars when including the immensity of Solana’s meme economy.

Meteora believes it’s found the solution. Partnering with Dexscreener’s Moonshot, a pump.fun alternative, Meteora has launched a creative new mechanic to reimagine how meme coins are launched on Solana.

The Meteora X DexScreener Solution

Meteora’s liquidity pools allow providers the unique ability to collect fees on locked vaults. In doing so, creators and liquidity providers are able to leverage high trading volumes and fees as a revenue stream, encouraging them to drive sustainable attention and value to their projects.

This is a far more sustainable alternative to the current meta, wherein the only way for creators to profit from their token’s success is by selling it on the open market. What’s more, partnering with DexScreener’s Moonshot enables even greater avenues for long-term alignment between creators and holders.

Integrating Meteora’s liquidity pools with Moonshot’s token launch platform, the collaboration aims to create truly community-owned and operated meme coins. By launching tokens on Meteora through Moonshot, creators and majority holders will earn lifetime fees on locked liquidity.

Instead of needing to dump their tokens to realize profits, token creators and early supporters will continue to benefit from the token’s growth and success. Here’s how it works:

• Initial liquidity is permanently locked to establish market confidence. However, fees earned through liquidity pools are claimable, transforming liquidity provision into a valuable revenue stream.

• Dynamic fees set by the protocol range from 0.15-15%, fluctuating to optimize volume and revenue generation in a variety of market conditions. 80% of funds collected through dynamic fees are split indefinitely as follows:

• 20% is distributed to the token creator.

• 70% is distributed to the initial Top 50 token holders.

• 10%  is allocated to DexScreener.

• The remaining 20% of the dynamic fee is passed on to integrators and trading bots that refer traders to the pool.

Through this reimagined token launch mechanic, Meteora and DexScreener aim to build a more sustainable meme economy. The new model transforms creators and early supporters into shareholders who can benefit from the token’s long-term growth, while discouraging the repeated pump-and-dumps we’ve come to consider ‘normal’.

pump.not-so-fun Anymore

In perhaps the biggest social media event of the year, presidential candidate Donald Trump joined tech mogul Elon Musk in an 𝕏 space.

With millions tuning into the event, Solana’s meme coin market was inundated with a colossal number of token launches on pump.fun, netting the platform over 35k SOL in revenue valued at over $5M based on Dune Analytics data.

Statistics collected during the event point to harrowing fragmentation of liquidity, with only 0.12% of launched tokens completing their bonding curve and migrating to Raydium.

Due to the prevalence of malicious actors and failed launches on the platform sentiment towards pump.fun has flipped negative, with commentators making their thoughts known on social media.

The Meteora X DexScreener collaboration seems to have arrived at the perfect time. While meme coin traders across the Solana ecosystem claim they're ready for a change, only time will tell if the new joint platform will foster a sustainable, mutually-aligned meme economy.

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