6 hours a hundred times, "Ethereum Pump.fun" welcomes a new player TaxFarm

Author: Joyce, BlockBeats

At 4:30 AM today, a meme coin platform on Ethereum, TaxFarm.ing, posted its first tweet on Twitter, releasing the token "FARM" contract and the protocol platform entrance. Subsequently, FARM surged, with a market cap exceeding $8 million within 6 hours of launch, peaking at $9.6 million. If calculated based on the price 10 minutes after opening, the maximum increase reached 150 times, realized in 5.5 hours. As of the time of writing, the price of FARM is $0.009, with a cumulative trading volume of $11 million.

What is TaxFarm?

Compared to other meme coin issuance platforms, the biggest mechanism of TaxFarm.ing is to provide meme coin developers with a way to profit other than selling tokens, and to combine this mechanism with the revenue expectations of its platform token FARM holders.

TaxFarm.ing has proposed a "Supply clogging" mechanism. When a new token is issued on the TaxFarm.ing platform, 1 ETH must be provided as initial liquidity, and 20% of the total supply will be "clogged" (locked), which is equivalent to a "refund fund."

If the token can generate enough transaction fees to cover at least 1 ETH of initial liquidity, the tax rate will remain at a 5/5 model. Once enough fees have accumulated and the locked portion is released, the tax rate will drop to 1/1.

If the token fails to generate enough fees (insufficient to cover the developer's initial 1 ETH liquidity) within 24 hours, an automatic liquidity protection mechanism will be activated. The clogged supply will be withdrawn and returned to the developer. This mechanism acts as an "exit mechanism," allowing developers to quickly reduce their losses when the project underperforms, giving them the opportunity to redeploy the token or invest in other more promising projects.

Through this design, the TaxFarming protocol attempts to achieve a "game balance" in the market: for token issuers, it reduces financial losses from project failures, ensures the safety of initial investments, and encourages them to focus more on long-term development and improving project quality. For token buyers, it provides a relatively safe investment environment, and as the project develops and the 20% locked supply is released, buyers can enjoy increasingly lower transaction tax rates and a better trading experience.

Additionally, the platform token of TaxFarm.ing is FARM, and holders profit from the transaction fees of meme coins. Of the transaction fees generated by meme tokens on the platform, 80% goes directly to developers, while the remaining 20% is allocated to the platform, half of which (10%) is redistributed in ETH to users holding and staking $FARM tokens.

Interactive Experience

The homepage of TaxFarm.ing is similar to Pump.fun, with a nearly 1:1 front-end layout replication. It also features the vibration display token switch pioneered by Pump.fun, allowing users to view tokens based on market cap or token income rankings. Currently, no tokens on TaxFarm.ing have stabilized above a market cap of $1 million, with the highest market cap being $260,000.

Moreover, TaxFarm.ing provides staking channels, with 260 million FARM tokens staked, accounting for approximately 21.6% of the total supply, and total staking rewards amounting to 23.3 ETH, valued at about $56,000.

Who is making money on TaxFarm.ing?

Protocol

TaxFarm.ing did not specify the exact costs for deploying tokens, only stating that it is "50% of the standard platform fee." If we consider the token deployment fee of 0.02 SOL on the Pump.fun platform, the fee charged by TaxFarm.ing for deploying tokens would be 0.01 SOL, approximately $1.3, which is negligible for a protocol.

According to TaxFarm.ing's introduction, the protocol's revenue mainly comes from 10% of the meme coin transaction fees on the platform. A screenshot taken by Blockbeats around 10 AM shows that a token named $BEN (Farmer Ben) on TaxFarm.ing has already generated $140,000 in revenue.

TaxFarm.ing's official Twitter also indicated around 10 AM that the dev revenue from meme coins has surpassed $250,000, but due to high traffic, the front-end data on the TaxFarm.ing official website frequently displays errors, with token revenue and market cap numbers often showing "0," and the total user count consistently showing 551, while the total token count continues to update, currently at 92.

Smart Money

GMGN data shows that the traders with the highest profit multiples on the TaxFarm.ing platform token FARM had buying costs between $1,000 and $7,000. A wallet address starting with 0xb3 acquired $168,000 in profit at a cost of $2,208, achieving a profit of 92 times, and has already sold all its holdings.

In addition to FARM, the $140,000 in transaction fee revenue and the meme coin $BEN (Farmer Ben) showcased by TaxFarm.ing's official Twitter have also allowed many to experience the joy of hundredfold coins. Among the top profit traders displayed by gmgn, nine of the top ten traders had buying costs below $500, with four traders achieving $10,000 in profits at a cost of around $50.

However, after attracting $2 million in trading volume in 20 minutes, BEN began its decline to zero, with a market cap of only $300,000 at the time of writing.