Tokenomics Implementation

Overview

MemeMint's tokenomics model is designed to be self-sustaining and value-generating from day one, with a focus on clarity and simplicity. For the PoC hackathon, we'll implement a simplified version that demonstrates the core economic principles while deferring more complex mechanisms to later phases.

Economic Flows for PoC

Fee Structure

Action	Fee Amount	Distribution
Basic Minting	2 TON	1 TON → Liquidity, 1 TON → Platform
Premium Minting	10 TON	6 TON → Liquidity, 4 TON → Platform
AMM Trading (Standard)	0.2%	0.15% → Liquidity, 0.05% → Platform
AMM Trading (Trend Coins)	0.1%	0.075% → Liquidity, 0.025% → Platform
Fixed-Price Trading	0.1 TON flat	100% → Reserve Pool
HODL Club Membership	1 TON/month	50% → Rewards, 50% → Platform

Revenue Pools

For the PoC, implement four primary pools:

Liquidity Pool
- Funded by: Portion of mint fees (1 TON Basic, 6 TON Premium), portion of trading fees (0.15% standard, 0.075% trend)
- Purpose: Provide swap liquidity for AMM
- Implementation: Separate balance tracking per coin
- Post-Cap: Locks 10 TON (Basic) or 100 TON (Premium) + remaining tokens into AMM
Platform Revenue Pool
- Funded by: Portion of mint fees (1 TON Basic, 4 TON Premium), portion of trading fees (0.05% standard, 0.025% trend), 50% of HODL Club fees
- Purpose: Platform sustainability, creator rewards, Meme Battle prizes
- Implementation: Single pool for all platform revenue
Reserve Pool
- Funded by: Fixed-price trading fees (0.1 TON/trade)
- Purpose: Support fixed-price buy/sell mechanism at 24h AMM average price
- Implementation: Separate balance tracking per coin
- Limit: 5% of pool per trade
HODL Rewards Pool
- Funded by: 50% of HODL Club membership fees (0.5 TON per member)
- Purpose: Provide 1 TON rewards for coins held >30 days (once per coin)
- Implementation: Tracking of eligible holders and payout status

Implementation Strategy

Smart Contract Functions

Fee Collection

func

;; Example fee collection mechanism (pseudocode)
() collect_fees(int fee_amount, int fee_type) impure {
  ;; fee_type: 0 = mint, 1 = trade, 2 = fixed_price
  
  if (fee_type == 0) {  ;; Mint fee
    int liquidity_portion = fee_amount / 2;  ;; 50% to liquidity for basic
    int platform_portion = fee_amount - liquidity_portion;
    
    send_to_liquidity_pool(liquidity_portion);
    send_to_platform_pool(platform_portion);
  }
  
  if (fee_type == 1) {  ;; Trade fee
    int fee_basis_points = 20;  ;; 0.2%
    int fee = (amount * fee_basis_points) / 10000;
    
    int liquidity_portion = fee / 2;  ;; 50% to liquidity
    int platform_portion = fee - liquidity_portion;
    
    send_to_liquidity_pool(liquidity_portion);
    send_to_platform_pool(platform_portion);
  }
  
  ;; Additional fee types
}

Bonding Curve Implementation

For the PoC, implement a simplified bonding curve with tier-specific caps:

javascript

// JavaScript implementation example
function calculateBondingCurvePrice(supply, amount, tier) {
  // Start price at 0.0005 TON
  const basePrice = 0.0005;
  
  // Tier-specific caps
  const capAmount = tier === 'basic' ? 50 : 500; // 50 TON for Basic, 500 TON for Premium
  
  // Simplified bonding curve formula
  // First 10% of tokens: linear 10% increase
  // Remaining 90%: linear 25% increase
  
  const totalSupply = 1000000; // 1M supply
  const firstTier = totalSupply * 0.1; // First 10%
  
  let price = 0;
  let remainingAmount = amount;
  let currentSupply = supply;
  
  // Calculate price for tokens in first tier
  if (currentSupply < firstTier) {
    const availableInTier = firstTier - currentSupply;
    const amountInTier = Math.min(remainingAmount, availableInTier);
    
    // Linear price increase in first tier (10%)
    const startPrice = basePrice * (1 + (currentSupply / firstTier) * 0.1);
    const endPrice = basePrice * (1 + ((currentSupply + amountInTier) / firstTier) * 0.1);
    const avgPrice = (startPrice + endPrice) / 2;
    
    price += amountInTier * avgPrice;
    
    remainingAmount -= amountInTier;
    currentSupply += amountInTier;
  }
  
  // Calculate price for tokens in second tier
  if (remainingAmount > 0) {
    const secondTierProgress = (currentSupply - firstTier) / (totalSupply - firstTier);
    const secondTierEndProgress = (currentSupply + remainingAmount - firstTier) / (totalSupply - firstTier);
    
    // Linear price increase in second tier (25%)
    const startPrice = basePrice * 1.1 * (1 + secondTierProgress * 0.25);
    const endPrice = basePrice * 1.1 * (1 + secondTierEndProgress * 0.25);
    const avgPrice = (startPrice + endPrice) / 2;
    
    price += remainingAmount * avgPrice;
  }
  
  return price;
}

// Function to check if cap is reached and transition to AMM
function checkCapAndTransition(coinId, currentTotalRaised, tier) {
  const cap = tier === 'basic' ? 50 : 500; // 50 TON for Basic, 500 TON for Premium
  const lockAmount = tier === 'basic' ? 10 : 100; // 10 TON for Basic, 100 TON for Premium
  
  if (currentTotalRaised >= cap) {
    // Transition to AMM
    const remainingTokens = calculateRemainingTokens(coinId);
    transitionToAMM(coinId, lockAmount, remainingTokens);
    
    // Pay creator rewards
    if (tier === 'basic') {
      payCreatorReward(coinId, 0.5); // 0.5 TON for Basic
    } else {
      // Premium: 1 TON base + up to 20 TON if cap reached
      const additionalReward = Math.min(20, (currentTotalRaised / cap) * 20);
      payCreatorReward(coinId, 1 + additionalReward);
    }
    
    return true;
  }
  
  return false;
}

AMM Pool Transition

When a coin reaches its cap (50 TON for Basic, 500 TON for Premium):

Lock liquidity (10 TON + tokens for Basic, 100 TON + tokens for Premium)
Transition from bonding curve to AMM
Enable unrestricted trading with market-determined price
Pay creator rewards (0.5 TON for Basic, 1 TON + up to 20 TON for Premium)

Implementation Notes:

Track total TON collected in bonding curve
Trigger transition function at appropriate cap threshold
Create AMM pool with locked liquidity
Update trading mechanism for the coin
Implement token burn mechanism (5% of every trade)

javascript

// Function to handle AMM transition
function transitionToAMM(coinId, lockAmount, remainingTokens) {
  // Create AMM pool with locked liquidity
  createAMMPool(coinId, lockAmount, remainingTokens);
  
  // Update coin status
  updateCoinStatus(coinId, 'amm_trading');
  
  // Enable unrestricted trading
  enableUnrestrictedTrading(coinId);
  
  // Log transition event
  logTransitionEvent(coinId, lockAmount, remainingTokens);
}

// Function to implement token burn
function implementTokenBurn(tradeAmount, coinId) {
  const burnPercentage = 0.05; // 5% burn
  const burnAmount = tradeAmount * burnPercentage;
  
  // Execute burn
  burnTokens(coinId, burnAmount);
  
  // Update total supply
  updateTotalSupply(coinId, burnAmount);
  
  // Log burn event
  logBurnEvent(coinId, burnAmount);
  
  return burnAmount;
}

Economic Flows Visualization

┌─────────────────┐     ┌────────────────┐     ┌────────────────┐     ┌────────────────┐
│  Minting Fees   │     │  Trading Fees  │     │ Fixed-Price    │     │  HODL Club     │
│  Basic: 2 TON   │     │  Standard: 0.2%│     │    Fees        │     │  Membership    │
│  Premium: 10 TON│     │  Trend: 0.1%   │     │  0.1 TON/trade │     │  1 TON/month   │
└────────┬────────┘     └────────┬───────┘     └────────┬───────┘     └────────┬───────┘
         │                       │                      │                      │
         ▼                       ▼                      ▼                      ▼
┌─────────────────┐     ┌────────────────┐     ┌────────────────┐     ┌────────────────┐
│ Liquidity Pool  │◄────┤ Fee Distributor├────►│  Reserve Pool  │     │ HODL Club      │
│ (Per Coin)      │     │                │     │  (Per Coin)    │     │ Revenue        │
└─────────┬───────┘     └────────┬───────┘     └────────────────┘     └────────┬───────┘
          │                      │                      ▲                      │
          │                      ▼                      │                      │
          │             ┌────────────────┐              │              ┌───────┴───────┐
          │             │ Platform Pool  │              │              ▼               ▼
          │             │                │              │      ┌────────────────┐   ┌────────────────┐
          │             └────────┬───────┘              │      │  HODL Rewards  │   │Platform Revenue│
          │                      │                      │      │  1 TON/coin    │   │  (50% of fees) │
          │                      │                      │      └────────────────┘   └────────────────┘
          │       ┌──────────────┴──────────────┐      │
          │       ▼              ▼              ▼      │
┌─────────┴───┐ ┌────────────────┐ ┌────────────────┐ │
│Token Burns  │ │ Creator Rewards│ │ Meme Battle    │ │
│5% of trades │ │ Basic: 0.5 TON │ │   Prizes       │ │
└─────────────┘ │ Premium: 1+20  │ │  1 TON/week    │ │
                └────────────────┘ └────────────────┘ │
                                                      │
                              ┌─────────────────────┐ │
                              │ Fixed-Price Buy/Sell│◄┘
                              │     System          │
                              └─────────────────────┘

3. Fixed-Price Trading

javascript

// Fixed-price buy implementation
async function fixedPriceBuy(coinId, amount, userWallet) {
  // Get coin reserve data
  const coin = await getCoinData(coinId);
  const reservePool = coin.reservePool;
  
  // Check reserve capacity
  const maxBuyAmount = reservePool * 0.05; // 5% limit
  if (amount > maxBuyAmount) {
    return { success: false, error: "Amount exceeds 5% pool limit" };
  }
  
  // Calculate price (AMM 24h average + 10% for buys)
  const avgPrice = await get24hAveragePrice(coinId);
  const buyPrice = avgPrice * 1.1; // 10% above average
  const tokenAmount = amount / buyPrice;
  
  // Add fixed fee
  const fee = 0.1; // 0.1 TON flat fee
  const totalCost = amount + fee;
  
  // Calculate and execute burn (5% of trade)
  const burnTokens = tokenAmount * 0.05;
  const finalTokenAmount = tokenAmount - burnTokens;
  
  // Create transaction
  const transaction = {
    to: FIXED_PRICE_ADDRESS,
    value: totalCost,
    data: encodeFixedPriceBuyData(coinId, amount, userWallet)
  };
  
  // Send to user for signing
  const result = await sendTransactionForSigning(transaction);
  
  // Update database records
  if (result.success) {
    await updateReservePool(coinId, amount, fee);
    await updateUserBalance(userWallet, coinId, finalTokenAmount);
    await executeTokenBurn(coinId, burnTokens);
  }
  
  return result;
}

// Fixed-price sell implementation
async function fixedPriceSell(coinId, tokenAmount, userWallet) {
  // Get coin reserve data
  const coin = await getCoinData(coinId);
  const reservePool = coin.reservePool;
  
  // Calculate price (AMM 24h average - 10% for sells)
  const avgPrice = await get24hAveragePrice(coinId);
  const sellPrice = avgPrice * 0.9; // 10% below average
  const tonAmount = tokenAmount * sellPrice;
  
  // Check reserve capacity
  const maxSellAmount = reservePool * 0.05; // 5% limit
  if (tonAmount > maxSellAmount) {
    return { success: false, error: "Amount exceeds 5% pool limit" };
  }
  
  // Add fixed fee (deducted from proceeds)
  const fee = 0.1; // 0.1 TON flat fee
  const finalAmount = tonAmount - fee;
  
  // Calculate and execute burn (5% of trade)
  const burnTokens = tokenAmount * 0.05;
  const finalTokenAmount = tokenAmount - burnTokens;
  
  // Create transaction to sell tokens
  const transaction = {
    to: FIXED_PRICE_ADDRESS,
    value: 0.05, // Gas fee only
    data: encodeFixedPriceSellData(coinId, finalTokenAmount, userWallet)
  };
  
  // Send to user for signing
  const result = await sendTransactionForSigning(transaction);
  
  // Update database records
  if (result.success) {
    await updateReservePool(coinId, -tonAmount, fee);
    await updateUserBalance(userWallet, coinId, -finalTokenAmount);
    await executeTokenBurn(coinId, burnTokens);
    
    // Send TON to user
    await sendTON(userWallet, finalAmount);
  }
  
  return result;
}

HODL Club Implementation

javascript

// HODL Club membership registration
async function joinHODLClub(userWallet) {
  // Membership fee
  const membershipFee = 1; // 1 TON per month
  
  // Create transaction
  const transaction = {
    to: HODL_CLUB_ADDRESS,
    value: membershipFee,
    data: encodeHODLClubJoinData(userWallet)
  };
  
  // Send to user for signing
  const result = await sendTransactionForSigning(transaction);
  
  // Update database records
  if (result.success) {
    // Split fee: 50% to rewards, 50% to platform
    await updateHODLRewardsPool(0.5);
    await updatePlatformRevenue(0.5);
    
    // Set membership expiration
    const expirationDate = new Date();
    expirationDate.setMonth(expirationDate.getMonth() + 1);
    await updateHODLMembership(userWallet, expirationDate);
  }
  
  return result;
}

// Process HODL rewards
async function processHODLRewards() {
  // Get eligible holders (hold >100 tokens for >30 days)
  const eligibleHolders = await getEligibleHODLers();
  
  // Process each eligible holder
  for (const holder of eligibleHolders) {
    // Check if holder already received reward for this coin
    if (!await hasReceivedReward(holder.wallet, holder.coinId)) {
      // Check if sufficient funds in HODL rewards pool
      const rewardsPool = await getHODLRewardsPool();
      
      if (rewardsPool >= 1) {
        // Pay 1 TON reward
        await sendTON(holder.wallet, 1);
        
        // Update rewards pool
        await updateHODLRewardsPool(-1);
        
        // Mark reward as paid
        await markRewardPaid(holder.wallet, holder.coinId);
      }
    }
  }
}

// Implement weekly HODL boost (24h spotlight)
async function processWeeklyHODLBoost() {
  // Get active HODL members
  const members = await getActiveHODLMembers();
  
  // Get coins held by each member
  const memberCoins = await getMemberCoins(members);
  
  // Schedule spotlight for each coin (distribute across week)
  let spotlightDay = 0;
  for (const [member, coins] of Object.entries(memberCoins)) {
    if (coins.length > 0) {
      // Pick one coin per member for spotlight
      const selectedCoin = coins[0]; // Could implement selection logic
      
      // Schedule spotlight (day % 7 to distribute across week)
      await scheduleSpotlight(selectedCoin, spotlightDay % 7);
      spotlightDay++;
    }
  }
}

Projected Revenue Analysis

javascript

// Revenue projection for 5K coins/day
function projectRevenue(coinsPerDay, basicRatio = 0.5) {
  // Calculate mint revenue
  const basicCoins = coinsPerDay * basicRatio;
  const premiumCoins = coinsPerDay * (1 - basicRatio);
  
  const mintRevenue = (basicCoins * 1) + (premiumCoins * 4); // Platform portion only
  
  // Estimate trading revenue (0.05% platform portion)
  const avgTradeSize = 5; // 5 TON average
  const tradesPerCoin = 2; // 2 trades per coin on average
  const totalTradingVolume = coinsPerDay * tradesPerCoin * avgTradeSize;
  const tradingRevenue = totalTradingVolume * 0.0005; // 0.05% average
  
  // Fixed-price trading revenue
  const fixedPriceTradesPerDay = coinsPerDay;
  const fixedPriceFee = 0.1; // 0.1 TON per trade
  const fixedPriceRevenue = fixedPriceTradesPerDay * fixedPriceFee;
  
  // HODL Club revenue (assuming 1 member per coin, 50% to platform)
  const hodlMembersPerDay = coinsPerDay / 30; // Monthly fee, daily equivalent
  const hodlRevenue = hodlMembersPerDay * 1 * 0.5; // 50% of 1 TON
  
  // Calculate total daily revenue
  const totalDailyRevenue = mintRevenue + tradingRevenue + fixedPriceRevenue + hodlRevenue;
  
  // Monthly revenue
  const monthlyRevenue = totalDailyRevenue * 30;
  
  // Monthly costs
  const monthlyCosts = 6000; // $6K/month
  
  // Monthly profit
  const monthlyProfit = monthlyRevenue - monthlyCosts;
  
  return {
    daily: {
      mint: mintRevenue,
      trading: tradingRevenue,
      fixedPrice: fixedPriceRevenue,
      hodl: hodlRevenue,
      total: totalDailyRevenue
    },
    monthly: {
      revenue: monthlyRevenue,
      costs: monthlyCosts,
      profit: monthlyProfit,
      profitMargin: (monthlyProfit / monthlyRevenue) * 100
    }
  };
}

Future Tokenomics Enhancements (Post-Hackathon)

Phase 1 (PoC Implementation)

Basic fee collection and distribution
Simplified bonding curve with tier-specific caps
AMM transition mechanism
Reserve pool for fixed-price trading
5% token burn on all transactions
Simple HODL Club membership (1 TON/month)
Basic creator rewards (0.5 TON Basic, 1 TON + up to 20 TON Premium)

Phase 2 (Enhanced Implementation)

Enhanced HODL Club benefits
Meme Battle implementation
Trend system optimization
Expanded creator rewards program
Referral system (10% of referral fees)

Phase 3 (Full Implementation)

Platform token (MEME) integration
Governance mechanisms
Advanced staking rewards (10 TON for 24h trending)
Cross-platform incentives
Advanced analytics and reporting

Tokenomics Implementation ​

Overview ​

Economic Flows for PoC ​

Fee Structure ​

Revenue Pools ​

Implementation Strategy ​

Smart Contract Functions ​

Fee Collection ​

Bonding Curve Implementation ​

AMM Pool Transition ​

Economic Flows Visualization ​

3. Fixed-Price Trading ​

HODL Club Implementation ​

Projected Revenue Analysis ​

Future Tokenomics Enhancements (Post-Hackathon) ​

Phase 1 (PoC Implementation) ​

Phase 2 (Enhanced Implementation) ​

Phase 3 (Full Implementation) ​

Tokenomics Implementation

Overview

Economic Flows for PoC

Fee Structure

Revenue Pools

Implementation Strategy

Smart Contract Functions

Fee Collection

Bonding Curve Implementation

AMM Pool Transition

Economic Flows Visualization

3. Fixed-Price Trading

HODL Club Implementation

Projected Revenue Analysis

Future Tokenomics Enhancements (Post-Hackathon)

Phase 1 (PoC Implementation)

Phase 2 (Enhanced Implementation)

Phase 3 (Full Implementation)