Original author: Joyce
At 4:30 this morning, TaxFarm.ing, a meme coin platform on Ethereum, posted its first tweet on Twitter, releasing the contract and protocol platform entrance for the token "FARM". Since then, FARM has been rising all the way, with a market value of over $8 million in 6 hours after going online, reaching a peak of $9.6 million. If calculated based on the purchase price 10 minutes after the opening, the maximum increase is 150 times, which takes 5.5 hours to achieve. As of writing, the price of FARM is $0.009, with a cumulative trading volume of $11 million.
What is TaxFarm?
Compared with other meme coin issuance platforms, the biggest mechanism of TaxFarm.ing is that it provides meme coin developers with ways to make profits besides selling tokens, and combines this mechanism with the profit expectations of its platform coin FARM holders.
TaxFarm.ing proposed a "Supply clogging" mechanism. When a new token is issued on the TaxFarm.ing platform, 1 ETH is required as initial liquidity, and 20% of the total supply will be "clogged" (locked), which is equivalent to a "refund fund".
If the token is able to generate enough transaction fees to cover at least 1 ETH of initial liquidity, the tax rate will remain at 5/5, and when enough fees have accumulated and the locked portion has been released, the tax rate will be reduced to 1/1.
If the token fails to generate enough fees within 24 hours (not enough to cover the developer's initial 1 ETH liquidity), an automatic liquidity protection mechanism will be activated. The supply of clog will be withdrawn and returned to the developer. This mechanism is equivalent to an "exit mechanism" that can quickly reduce the developer's losses when the project performs poorly, giving the developer the opportunity to redeploy tokens or invest in other more promising projects.
Through such a design, the TaxFarming protocol attempts to achieve a "game balance" in the market: For token issuers: it reduces financial losses caused by project failure, ensures the security of initial investment, and encourages them to focus more on long-term development and project quality improvement. For token buyers: it provides a relatively safe investment environment. As the project develops and the 20% locked supply is released, buyers can enjoy lower and lower transaction tax rates and get a better trading experience.
In addition, the platform currency of TaxFarm.ing is FARM, and holders earn profits through the transaction fees of meme coins. 80% of the transaction fees generated by meme tokens on the platform go directly to the developers, and the remaining 20% is allocated to the platform, half of which (10%) will be redistributed to users who hold and stake $FARM tokens in the form of ETH.
Interactive Experience
The homepage of TaxFarm.ing is similar to that of Pump.fun, and the front-end layout is almost 1:1 restored. It also has the vibration display token switch pioneered by Pump.fun. Tokens can be viewed based on market value or token income ranking. Currently, there is no token on TaxFarm.ing with a stable market value of more than 1 million US dollars, and the highest market value is 260,000 US dollars.
In addition, TaxFarm.ing provides a staking channel. Currently, 260 million FARM tokens have been staked, accounting for about 21.6% of the total supply. The total staking income is 23.3 ETH, worth about US$56,000.
Who makes money on TaxFarm.ing?
protocol
TaxFarm.ing did not give a specific fee for deploying tokens, but only stated that it was "50% of the standard platform fee". If we calculate based on the 0.02 SOL token deployment fee on the Pump.fun platform, the fee charged by TaxFarm.ing for deploying tokens is 0.01 SOL, which is about $1.3, which is negligible for a protocol.
According to TaxFarm.ing, the protocol revenue mainly comes from 10% of the meme coin transaction fees on the platform. In a screenshot taken by Blockbeats at around 10 am, a token called $BEN (Farmer Ben) on TaxFarm.ing has earned $140,000.
TaxFarm.ing’s official Twitter account also updated the post at around 10 a.m., and according to front-end data, meme coin’s dev revenue has exceeded $250,000. However, perhaps due to excessive traffic, the front-end data on the TaxFarm.ing official website is currently frequently displaying errors, with token revenue and market value figures often showing as “0”. The total number of users has been shown as 551, and only the total number of tokens is being updated, currently at 92.
Smart Money
GMGN data shows that the traders with the highest profit multiples on the TaxFarm.ing platform coin FARM had a purchase cost between US$1,000 and US$7,000. The wallet address starting with 0x b 3 made a profit of US$168,000 at a cost of US$2,208, a profit of 92 times, and has now sold all the chips.
In addition to FARM, the meme coin $BEN (Farmer Ben), which earned $140,000 in fees and was officially promoted by TaxFarm.ing, also allowed many people to experience the joy of a 100-fold coin. Among the top profitable traders shown by gmgn, nine of the top ten traders with the most profits had a purchase cost of less than $500, and four traders earned $10,000 at a cost of around $50.
However, BEN fell to zero after attracting 2 million transactions in 20 minutes, and its market value was only $300,000 at the time of writing.
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