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". After that, FARM rose all the way, and its market value exceeded $8 million in 6 hours after it was launched, reaching a maximum of $9.6 million. If calculated based on the purchase price 10 minutes after the opening, the maximum increase was 150 times, and the realization time was 5.5 hours. As 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 make profits other than selling tokens, and combine this mechanism with the profit expectations of its platform coin FARM holders.

TaxFarm.ing proposes 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 can generate enough transaction fees to cover at least 1 ETH of initial liquidity, the tax rate will remain at 5/5. When enough fees are accumulated and the locked part is 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 The clog supply will be withdrawn and returned to the developer. This mechanism is equivalent to an "exit mechanism" that can quickly reduce developers' losses when the project performs poorly, giving developers 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 make profits through the transaction fees of meme coins. Of the transaction fees generated by meme tokens on the platform, 80% belongs directly to the developers, and the remaining 20% of the fees are allocated to the platform, half of which (10%) will be redistributed in the form of ETH to users who hold and stake $FARM tokens.

Interactive experience

TaxFarm.ing homepage is similar to Pump.fun, with a front-end layout that is almost 1:1 restored. It also has a vibration display token switch pioneered by Pump.fun, and can view tokens according to market value or token income ranking. Currently, there is no token on TaxFarm.ing with a 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 pledged, accounting for about 21.6% of the total supply, and the total staking income is 23.3ETH, worth about 56,000 US dollars.

Who made money on TaxFarm.ing?

Protocol

TaxFarm.ing did not give the specific fee for deploying tokens, but only stated that it was "50% of the standard platform fee". If calculated based on the 0.02SOL token deployment fee on the Pump.fun platform, the fee charged by TaxFarm.ing for deploying tokens is 0.01SOL, which is about 1.3 US dollars, 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. A screenshot taken by Blockbeats at around 10 a.m. showed that a token named $BEN (Farmer Ben) on TaxFarm.ing had earned $140,000.

TaxFarm.ing’s official Twitter account also posted a message at around 10 a.m., and according to the front-end cohabitation data, the dev income of the meme coin had exceeded $250,000. However, perhaps due to excessive traffic, the front-end data of the TaxFarm.ing official website is currently frequently showing errors, with token income and market value figures often showing "0", the total number of users has been shown as 551, and only the total number of tokens is continuously updated, currently at 92.

Smart Money

GMGN data shows that the traders with the highest profit multiples on the TaxFarm.ing platform currency FARM bought at a cost of between $1,000 and $7,000. The wallet address starting with 0xb3 made a profit of $168,000 at a cost of $2,208, a profit of 92 times, and has now sold all its 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 went down the road 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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