The investment logic in the cryptocurrency industry is undergoing significant changes. The narrative surrounding venture capital (VC) is declining, while the Meme sector is growing ever more intense.

According to data from CoinMarketCap, the total market capitalization of Meme tokens has now reached $114.3 billion, compared to just $17.5 billion a year ago, marking a year-on-year increase of about 550%. At the same time, the daily trading volume of Meme tokens has surged approximately 18 times. Amid this meteoric rise in popularity, ecosystems centered around Memes are rapidly expanding. Within this ecosystem, the sub-sector of Memecoin issuance has developed a variety of fresh, innovative methods.

Earlier this month, SushiSwap announced the launch of a new type of Memecoin issuance called Vesting Launch, which features linear token vesting to prevent “snipers” and “pump-and-dump” schemes from ruining the potential of tokens in the first few hours after they go live. To help users better understand and participate in this new feature, this article will provide an in-depth introduction to how it works and the Memecoin issuance platform, Dojo, behind it.

What is Vesting Launch?

Vesting is a type of allocation mechanism that typically involves a lock-up period. During this period, assets (such as stocks or tokens) cannot be transferred or sold. Only after the lock-up period ends do the beneficiaries gradually gain access to these assets.

To promote the long-term development and stability of a project, Vesting is widely used in the tokenomics of cryptocurrency projects. It helps prevent key stakeholders—such as team members and early investors—from dumping large amounts of tokens in the early stages of a project, which could cause price volatility and market instability.

Generally speaking, Vesting is structured based on time, performance, or a hybrid model. However, at its core, it is designed to incentivize stakeholders to engage with the project over the long term.

SushiSwap’s introduction of a new Memecoin issuance method, Vesting Launch, follows the same logic. The team stated that countless promising tokens are targeted by snipers and sold off just minutes after launch, which ruins their chances of gaining traction with the audience. The Vesting Launch mechanism aims to make Memecoin trading more engaging and sustainable.

Source: Dojo

In summary, under this issuance method, tokens are gradually released to buyers who purchase them within 24 hours after token creation. After 24 hours, trading will proceed normally with no restrictions. For example, if a user purchases 100 tokens in the 12th hour after token creation, their balance will show 50 tokens. These 50 tokens can be freely traded, while the user’s wallet will display the full balance along with a detailed schedule showing when the remaining tokens will be unlocked.

Specific Mechanics and Rules of Vesting Launch

Currently, users can participate in the Vesting Launch on the Dojo platform. Dojo is a Memecoin Launchpad launched by SushiSwap in collaboration with Goat Trading in early September this year. Dojo supports a multi-chain ecosystem, but at this stage, it has integrated with the Base network. Future expansions are planned for Solana and other EVM-compatible chains.

In fact, besides Vesting Launch, Dojo has introduced four other Memecoin token issuance methods. Below, we’ll use Vesting Launch as an example to outline its specific rules.

How to Create a Vesting Token:

To create a Vesting token, users need to enter the creation page and select the Vesting Token type. Then, they must input the required token details, such as name, symbol, total supply, description, and image. Currently, the fee for creating a token is paid in ETH on the Base chain, which is approximately $0.60 per creation.

Source: Dojo

Once the token is created, 100% of its total supply is deposited into the Sushi V3 liquidity pool. In addition to the classic token types, token transactions— including those under the Vesting model— are subject to a 2% tax on every buy and sell transaction.

Dojo, which is powered by DEXScreener, provides a trading dashboard where users can view token price charts (K-lines), the number of token holders, the distribution of holdings, and the progress of the Vesting schedule. Additionally, Dojo supports a comment section as well as an automatic sell function.

The primary purpose of the Vesting issuance method is to extend the lifespan of Memecoins by setting a lock-up period. This prevents snipers and “pump-and-dump” traders from dumping large quantities of tokens in the first few hours after launch. However, this lock-up is limited to just 24 hours.

In reality, despite their strong wealth-building potential, only a tiny fraction—typically one in a million—become well-known, while more than 99% of Memecoins will fade into obscurity and drop to zero within the first few days of their launch. From this perspective, offering a 24-hour window for trading is somewhat reasonable.

Theoretically, earlier buyers will enjoy a price advantage if the token has growth potential. During the 24 hours after a token’s creation, if the price increase ensures that users who have unlocked some of their tokens can cover the cost of their remaining locked tokens, short-term speculators will be incentivized to sell for a profit before the full unlock happens.

As for later traders, whether or not they completed their transactions within the first 24 hours, they will face selling pressure from users who have already made a profit.

Therefore, fundamentally speaking, although Vesting Launch offers an innovative approach to Memecoin issuance, it remains a PvP (Player versus Player) game. Without continuous new capital inflow, once the token price starts to decline, it becomes easy for a stampede to occur, leading to a “death spiral.”

Looking at the current Vesting Tokens on the Dojo platform, most of them follow a one-time surge trend.

Source: Dojo

Taking some of the most popular Vesting Tokens by market capitalization, such as SUSHIDOG and DOJO, as examples, we can see that these tokens experienced multiple, even tens of times, price increases in the first few hours after launch. However, shortly afterward, they rapidly collapsed, with token prices falling by over 90%. Trading volumes plummeted to only a few dozen or a few hundred dollars, and the tokens quickly lost all their hype.

Clearly, for Memecoins, which are based on attention economics, once the hype fades, the tokens are quickly abandoned by both the market and users. At this point, any remaining users in the market are left with nothing, facing a complete loss.

What Other New Ways are There to Issue Memecoins?

In addition to the Vesting Launch method, the Dojo platform has previously launched four other methods for issuing Memecoins, which are as follows:

• Classic: The classic token is simply an ERC20 token with no special features or functions in its creation or structure.
• Charity: For tokens issued under the Charity method, all transaction taxes are converted into ETH and directly sent to a chosen charity contract. Currently, the platform offers about 50 charity organizations to choose from.
• Tax Share: Tokens created using the Tax Share method involve the token holders sharing the transaction taxes. For example, if a user holds 10% of a particular token, they will receive 10% of the transaction taxes collected from every trade of that token.
• Multiplier: The Multiplier token provides a lottery-style feature. Each time a user makes a purchase, they have a 1% chance to win 4 times the number of tokens they would normally receive. The maximum amount of tokens a user can win depends on the lottery pool, which comprises tokens collected as transaction taxes.

The Dojo platform aims to offer users a safer, simpler, and more engaging Memecoin trading experience. However, no popular tokens have emerged based on current performance, and the platform’s trading volume and activity remain relatively low. As of now, the highest market cap for any Memecoin project on the platform is under $50,000, and nearly all the Memecoins have peaked immediately upon launch without sustaining long-term interest. Additionally, the official platform has not yet provided key reports such as contract audits.

Of course, aside from Dojo, more and more development teams, project creators, and public blockchains are competing in the Memecoin issuance space. In addition to Pump.fun, which still holds the top spot, platforms like Moonshot, Sun Pump, Four.Meme, Wonton, and Uptos are emerging to capture traffic. These platforms are diversifying their functional designs to provide a better user experience.

As cryptocurrency users, it’s important to remain clear-headed at all times. The further development of the Memecoin sector has spawned more mature products and innovative methods, but it cannot change the fact that this is essentially a “game of fools.” The influx of hot money is intensifying the competition in the attention economy, and the difficulty of finding a successful Memecoin project has skyrocketed amidst the explosive growth in token issuance. Don’t try to find treasure in a junk heap, as that wastes your time and energy.

Conclusion

In conclusion, while Vesting Launch introduces some innovation in the distribution mechanics of Memecoins, it does not change the fact that this is still a PvP (Player versus Player) game. Without sufficient incoming capital to support the market, the 24-hour gradual unlocking period is merely a superficial protection; ultimately, it’s all about who “runs the fastest.”

As cryptocurrency investors, it’s crucial to stay open-minded, but also remain vigilant at all times. When entering the Memecoin arena, it’s best to avoid participation from the start and refrain from getting involved if you lack sufficient trading skills.