Base Chain’s Meme project DINO announces the launch of a new ERC50 protocol. From the code’s features, it can be seen that the ERC50 protocol combines the characteristics of Uniswap-V2, effectively achieving fair distribution. However, in terms of wealth effect, the reasonable Meme coin DINO did not experience a crazy bull market effect.
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Table of Contents
Introduction of the first fair launch ERC50 protocol
Can a fairer ERC50 bring about Meme madness?
Base continues to drain Solana and Ethereum
Besides the code, no one can be trusted. Perhaps this is the voice of many Meme coin old players, especially after experiencing the crazy weekend of “Maji’s Leek Harvesting”.
Introduction of the first fair launch ERC50 protocol
On March 29th, a Meme project called DINO started fundraising on the Base Chain, and this sentence became the source of their community’s trust. DINO announced the launch of a new ERC50 protocol, which aims to achieve fair distribution, with almost all operations during the presale written into the contract. This protocol can automatically allocate tokens, lock them, refund them, and add LP to the liquidity pool automatically. According to the project, this project can achieve: no administrators, no rug pulls, no RUG.
The project ultimately raised 301 ETH in two days, with over 1400 addresses participating in the fundraising, totaling approximately 1.06 million USD. As advertised, half of the tokens and all ETH were injected into the LP liquidity pool and permanently locked. As of April 1st, DINO had 8,968 token holders, and the LP pool size was 8.2 million USD, ranking fourth on the Base Chain.
The frenzy around DINO has sparked discussions about the ERC50 protocol. A user named @TheDarkRippler tweeted:
Can a fairer ERC50 bring about Meme madness?
Currently, the name ERC50 is only used in the DINO project and has not become a standard ERC token through voting. On March 27th, a user named WhiteRiverBay released a new protocol called “evm-fair-launch” on Github.
The code’s description includes the following points:
1. No admin, no special withdrawal rights, no rug pulls, no one can be faster than others, no one can rug, all funds raised will be added to the liquidity pool.
2. The contract is inherited from the ERC20 token contract.
3. Added fair launch functionality to the Uniswap-V2 liquidity pool.
4. Players only need to transfer the corresponding amount of Ether to the contract to receive tokens.
5. Players can transfer tokens to the contract at any time before the launch to receive a refund.
6. Once the conditions are met, players only need to transfer 0.0005 Ether to the contract, and the contract will send all sold tokens and the equivalent tokens of all Ether in the contract to the DEX exchange to increase liquidity. Tokens can be traded immediately.
7. Currently, only the Uniswap-V2 version of the contract is available to prevent increased liquidity before the launch.
From the features of the code, the ERC50 protocol combines the characteristics of Uniswap-V2, effectively achieving fair distribution. However, for users who attempt to generate income by forming LP, the protocol does not support LP extraction, and all liquidity LP tokens will be permanently locked in the contract and cannot be withdrawn. However, the submitter of the protocol also stated that they are developing a contract that allows for the extraction of LP rewards (a version that allows for the extraction of fee income generated during the transaction) to incentivize the project to continue operating.
In fact, the so-called ERC50 protocol’s features do not seem to be new. Features such as automatic locking and distribution through smart contracts have long been widely used in many IDO platform projects. However, when these features are adopted in Meme coins after the recent hype of making money, they meet people’s pain points and imagination regarding Meme coin issuance. Especially when the release of this protocol coincided with Huang Li’s “Maji’s Leek Harvesting” behavior, it created a strong contrast.
From the perspective of wealth effect, the reasonable Meme coin DINO did not experience a crazy bull market effect. According to PANews calculations, DINO’s fundraising price was approximately $0.000116, and as of April 1st, the highest price reached $0.0023, an increase of only about 20 times. The stable price after the decline is around $0.0011, with a price growth rate of only 10 times. This is a small increase compared to the hundreds or thousands of times increase seen in the popular BOME and SLERF coins on the Solana chain. This inevitably leads to the question of whether the key core of Meme is trust or hype.
Base continues to drain Solana and Ethereum
From another perspective, this difference may exist between Solana and Base Chain. Recently, Base Chain has begun to make efforts in the Meme field and has indeed achieved unexpected results, but there is still a significant difference compared to Solana.
On March 30th, the number of contracts established on the Base Chain reached 2,091, which is nearly 31 times higher compared to the 66 on March 1st. On the same day, the daily active users on the Base Chain reached over 450,000, reaching the second-highest point in history. On March 31st, the Base Chain broke its own 24-hour trading volume record on decentralized exchanges (DEX), increasing by about 25% compared to the previous day, surpassing the $1 billion mark.
In comparison, the recent token issuance volume on Solana is not as high as the peak of 9,943, but it has remained stable at 6,000 to 7,000 or more. On March 30th, Solana had 1.52 million daily active users, far exceeding the Base Chain’s data.
However, from another set of data, we may see something interesting. In the past 7 days, the net outflow of funds from Solana and Ethereum to the Base Chain is about $4 million. Within a week, the Base Chain saw an outflow of $25 million and an inflow of $31 million, resulting in a net inflow of approximately $6 million. From this set of data, most of the new trading volume on the Base Chain comes from draining Ethereum and Solana.
With the emergence of new wealth creation myths on the Base Chain, such as DEGEN and mfercoin, the Base Chain’s state of draining other chains may continue.
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