Redefining Memecoins: A Radical New Business Model | Caps - Flaunch.gg |

hello everyone my name is caps uh I'm part of the founding team of the flunch protocol which is a Unis swap uh a launch coin Launchpad built on top of Unis swap V4 uh we started out as a team uh in nfx back in 2020 um where we were built an nft liquidity protocol that reached roughly 100 million tbll um back in 2021 so this talk is about mem coins but not as you know them by building our own Dex layer on top of Unis swap V4 we've been completely redesigned the marketplace for coins and allowed for a lot more functionality and composability to be built on top so over the next 20 minutes I'm going to try and convince you that there is a massive positive sum design space to build out here that will add value to creators and communities so let's take a very quick look at the evolution of memes so really it started out in with Dogecoin in 2013 but arguably Bitcoin before that these are coins that created huge amounts of value from a shared culture and shared idea and then several years later in 2017 we had the growth of nfts um where we saw art and identity coming on chain in kind of form of memes and then after that we had defi summer in 2020 and nfx when they built this Li liquidity protocol for nfts fractionalized nfts into ERC 20s that made them more liquid and more accessible to more people um this brought them closer to the kind of mem coins that we see today and successful collections back on um nfx with things like mades and cryptopunks uh saw tens of millions of dollars of volume on daily on a daily basis and that created like a lot more um speculation and interest around nfts but then memes just started going straight to the ec2s U Pepe and shib launched with fungibility out the gate and demonstrated how high mcoin volumes and valuations could go and this set in motion massive growth in me poin production where coins would see 100x THX gains leading to more and more uh mcoins being created and then there's been a massive massive explosion in activity in the mcoin market since then and the last two years we've seen volumes grow enormously particularly on salana but what started out with humble beginnings sort of sort of ended up in this place we have now where we have a series of pump and dumps insider trading rugs and general criminality so this is what most people sadly think of when they think of meme coins and particularly in the ethereum ecosystem so what got us here in the first place well well the revenue model was captured middl men were taking enormous margins billions of dollars of volume billions of dollars of swap fees everything extracted at every layer in the system and we had zero some games in hyper PVP markets at some point we forgot what blockchains were made to do instead of removing the middlemen the middlemen was rewarded massively instead of building Network effects they created isolated products and these products were built with the sole focus of tapping into the global liquidity of blockchains and extracting as much value as possible so we want to start a revolution led by ethereum we'd already been building an nft product on the top of Unis swap V4 over a year ago now when the mcoin market started to take off at the time I was reading the book radical markets um which I thoroughly recommend and also the Unis swap V4 white paper and so we started taking a look at univ V4 and how we could apply some of the functionality they unlocked there to the mcoin market which was seeing this massive levels of extraction and so we're thinking how do we create something that aligns coin creators and their Community how can we create sustainability for these coins and growth and how can we create network effects and economies around these coins to create more growth and more value for the participants and so we built flunch an open protocol for Capital formation so this isn't just about memes anymore this is about enabling Capital formation for any idea big and small there are two core components one all revenues are redistributed back to creators under this model that would be a billion dollars a year back to the communities and the creators of these coins and secondly tokenizing these these revenue streams and we tokenize the rights to these we can unlock defi utility and secondary markets so first returning all the fees this is simple we removed the middleman exactly what blockchains were built to do so creators on flunch no longer need to sell their coins they rewarded with every single Swap and they get paid just an eth on every swap in real time straight from uni swap fe4 this aligns creators and the community Through volume and fee growth rather than through capital and growth there and it also reduces reputation risk for influencers and others that want to get involved no longer are you aligned with having to dump your token on your followers you are aligned with creating volume and distributing your token in a much uh bigger way so let's look at some examples so if SPX 6900 had launched through flunch they they would have raised $4 million through the trading fees alone this isn't from selling tokens or extracting value this is just passively from the trading fees in Unis swap so instead that $4 million was just given back to the Launchpad that they launched with which when it could have been spent on things to grow the SX 6900 Meme and brand then we have whiff if whiff had flunch $8 million and in fact we've spent months raising $600,000 to try and get onto the Vegas sphere $100,000 is what they would have raised in 24 hours if they had launched then we have Giger trying to become a fitness brand trying to become a Lifestyle brand but with what Revenue $8 million if they had launched fog $13 million jail stol $14 million and fcoin a massive $45 million none of this from selling tokens everything from just receiving the swap fees and we even looked at car the coin of the Central African Republic and they in the first 24 hours of launching if they went with flunch they would have made 0.3% of their GDP in trading volume so we even built this website if. fl. just to highlight how much has been extracted and how much doesn't have to be extracted so flunch creates passive income for these coins but what if we went a step further and we tokenized the rights to that income every launch creates an Associated nft and the holder of the nft owns the full rights to the coin's revenue and the future income this is a snippet of our secondary Market on Magic Eden where creators and users can buy and sell the underlying business models and revenues of these coins so with flunch we hand the business model to creators to do with as they please creators now have real ownership that not only aligns with their holders but helps them to grow a sustainable economy around these coins so this isn't just about mem coins this could be anything memes yes but products Brands franchises and even Network States imagine if Dogecoin own the majority of its trading fees you're talking a GDP level of income that they could use so just a recap creators are aligned by volume and not from selling tokens coins are sustained through passive income and underlying business models are tokenized and by tokenizing these business models we unlock composability which I is what I wanted to talk to builders about today so this brings me on to what can we build on top what ideas can we do so when we think of nftf for pfps and art and also Financial things like options contracts and liquidity positions we now have a new type of nft one that captures the revenue and the future income of that coin so with this this we can unlock things like being able to borrow against your Revenue Stream So as a Creator I can now unlock value again without even having to sell The Ether I'm getting paid and you also have things like interest rate swaps you could build so I could lend out a revenue stream and get paid a fixed rate income off the back of that and someone else takes on the variable variable rate risk and then we have things like fractionalization something that nfx was doing at the time where you could share the ownership in some way and redistribute fees in some way and obviously there's enormous design space here that you can think of that would apply to nft then we have farms and gamification um one thing I'd love to see more of with Unis swap V4 is they have this donate function that allows people to reward LPS in the same way in the same logic that swap fees are are rewarded um so you can create new incentives for how to build liquidity for these coins and help distribution that way then we also have like gamified fundraising imagine for example a fundraising where a c when a certain goal is met the funds raised from the volume are distributed in some way kind of like a Kickstarter and we we've got some ideas for this at the moment and then other fun things you know coin battles having these coins going up against each other and they can take the revenue of the other coin based on some parameters of winning or losing and then sort of more interestingly from a business point of view you can build other launch pads on top so while the flunch protocol cannot take fees on swaps other launch pads can build on top of launch and they can choose to take anything from 0% all the way to 100% of the fees so we've been working with a number of others for Integrations um and quick inel who have an AI agent Launchpad are going to be tapping into flaun to do their token launches and also handling and extending their re Revenue model from that then we have public goods funding which is something I'm really excited about and would love to see more more of and we are already seeing some of this happening on flunch um one one coin has donated its Revenue stream uh to protocol Guild which means that now every every time that coin is traded eth will be paid to protocol Guild to fund raise for them and that's something that's completely permissionless protocol Guild didn't have to you know set anything up someone else just created a fundraising mechanism for someone else and you can see here in the creation flow you can set the fee receiver at the contract level as well to determine who actually receives the swap fees um and it it raises an interest interesting question about fundraising generally um you know you could make donations to coins that give their revenue to a public goods and that might itself then Inspire more volume to be created and more swap fees and in the end you could have a a fundraising project that's going and raising millions of dollars for a public good so remember these coins are permissionless and they can be made by anyone um and how as Builders can we create tooling around this to help fund more and more stuff in the ecosystem and then there's the possibility of looking at composability with existing apps you have things like pull together and joke race pull together where coin revenues could go into the savings pot and is dist attributed to a coin's community at at the end and also joke race where eth is reinvested in contests that drive the coin or its product forward and then we have community takeovers and CTO so when the uh creator of a project um stops working on it the project will often die uh and there's a handful of exceptions obviously like pudgy Penguins but what if the CTO could happen onchain with flunch communities could form a dow and they can place an offer to buy out the revenue stream and take all the future income be incentivized that way or you could build more interesting stuff for example an escro contract that buys out the Creator and transfers the revenue nft to the community once the fundraising Target is hit what this means is you could create safer and more secure CTO which would allow them to happen more often and be more efficient with better outcomes as well and this is one I really quite like from run a few a few weeks ago and this wasn't related to mem coins in in his tweet but it has a a big impact of what we're doing which is he said imagine if there's a way for an armchair CEO too lazy to do real work just wants to be an ideas guy to actually hand over their idea to a highly capable structured agent who could then take the idea and run with it while the founder relaxes and well when building out Flores was one of the ideas we had was actually you could create a coin donate the revenue stream to an AI agent and the agent would then be incentivized to grow the revenue stream and build out distribution for that that idea so what we're doing with launch is creating a new generation of coins which are about sustainability and composability at the center you have the coin which generates fees for you the Creator and if successful those fees will be enough to expand the distribution of the coin driving more and more volume and more and more fees you no longer need to sell your coins to realize profit and around the coin we have creators who can build an economy of products that create value and utility for their token so I have some predictions um over the next 12 months um one repeat of jpeg summer with meme coins or Creator coins now that have even broader set of creators who can raise capital and form Capital more easily than ever before influencers coming on chain and creating token models that extend or even replace their existing subscription models an entirely new method for fundraising that creates positive outcomes while allowing DG to Degen and creators to create and self-funded AI agents that can incubate their own tokens and we're experimenting with that right now with our own AI agent mascot flunch and we're also going to see massive improvements to trust and verifiability and transparency um so we've looked right now to solve Capal formation by returning all the fees back to creators and communities but what we next want to look at is really improving and and optimizing for trust and verifiability and safety that way but we're not looking to do this alone to realize this goal we're going to need need Builders to integrate and use and and develop everything um and we want to see this success happen on ethereum and and the ethereum ecosystem so we want to work with Builders who want to support this new type of economy um and while the flunch protocol doesn't take any fees Builders can build whatever business model they like on top and we are at the moment planning a grants program and we'd love to chat to builders about their needs and how we can support them in building on top um so I've got a couple of minutes uh I might just quickly talk a little bit about some of the V4 hooks we used um because I should also say our docs have a lot of information on V4 as well as the flunch protocol um and you might have noticed I've been saying a lot that we return all the fees back to users how do we do that well we actually um and what this what's great about this is with the V4 hooks there is absolutely zero impact on user experience everything works exactly as you might expect and Integrations are easy and then on the sell side do similar the user uh sends in their coins and then on the other side they unwrap the fle into eth so the UN swap V4 pool is actually under the hood paired with fle rather than eth but the user never actually has to experience fle um and just deals with eth and then we have what we call the progressive bid wall so eim fees uh on flunch could be automatically added to a single tick position just below spot um and this will actually follow the spot price up so we use a hook to to move the liquidity and if the spot price moves up then the limit order just follows behind it uh this helps reduce the impact of selling but also improves execution prices for Traders as well and then maybe my favorite hook just for its Simplicity is the internal swap pool and there are a few things we solve for here one LPS don't want to be paid in tokens they just want to be paid in eth everyone who's been lping on V2 and V3 know that users want better execution prices obviously and three holders don't want the LPS dumping their token side of the rewards into the market and suppressing the price so we sold for this through the internal swap pool where the token part of the fee goes into the internal swap pool when the next user comes to buy the token they do a before swap check to see if there's any available tokens in the internal swap pool they buy it without any price impact it's like an OTC essentially and then once that's filled they'll then go to the market and fill the rest of the order there um so again this reduces the like improves execution price and reduces um uh yeah any slippage or anything like that so I'm going to finish there um we've got our docs at docs. fla.

we don't just have guys to flunch as I was saying we also have quite a bit in there for V4 we've got a repo of V4 helpers as well um and also please yeah feel free to reach out to twed our protocol lead and devell um who'd be very happy to help with Integrations and I'm there as well thanks so much for listening [Applause]