Original title: Cobo Argus Strategy Weekly Report #8
Original source: Cobo Argus
Farcaster welcomes its first community memecoin - $DEGEN
After the first four memecoins all failed, the Farcaster community finally ushered in the first memecoin to achieve small-scale success - $DEGEN, which is currently No. 1 in the BASE ecological ranking trend on Dex Screener.
$DEGEN is a truly community-led meme project, which is reflected in fair distribution, grassroots atmosphere, bottom-up expansion and promotion of organic community growth, using loose unofficial DAO organization and build, and it is this kind of initiative initiated by the community The community-led gene gives it a natural integration-friendly advantage, and it has grown organically in less than 20 days after its launch, with multiple consumption scenarios already in place.
1) Adopt a fair issuance mechanism.
-The total supply of $DEGEN tokens at the creation is 37 billion. There is no pre-mining, and 15% of the supply tokens with a vesting period of more than 4 years are reserved for ecological development. Currently, 1/3 of the team tokens (5% of the supply) have been locked in a 2-year vesting contract, and the unlocking time is July 26. The rest are used for airdrops and liquidity rewards (the initial liquidity pool tokens will be unlocked in July 24). After 4 years, additional tokens will be issued at a permanent inflation rate of 1% per year to maintain Degen's continued participation and contribution. For details of token distribution, please see here.
2) Originated from the Farcaster community, specifically the Farcaster degen channel.
-70% of the genesis supply was allocated to the Degen community (A.K.A farcaster's Degen channel) and released via 3 rounds of airdrops.
The first round of airdrops, Airdrop 1, has been launched and is currently open for claiming. The token distribution rules are based on the Farcaster user's likes, reposts, and followers to obtain corresponding Degen points. Holding some community-related NFTs can also obtain additional boost points. Each point can obtain one $DEGEN token.
3) Community-led and self-organized, organically expanding use cases.
Degen has become the most active channel on Farcaster. Although this channel applies to degen in a broad sense, the posts (casts) that can be seen everywhere in this channel are all about the construction and narrative of Degen itself. It can be said that it is the Degentlemen and Degentlewomen groups represented by the Degen project that contribute to Degen's DAU. Data shows that $Degen is the most active channel on Farcaster, even higher than the sum of all other theme channels.
As a product in the exploratory stage, Farcaster's new feature trials are also accompanied by degen, the channel with the largest daily activity. For example, the degen (tlemen) channel has its own exclusive top hat like icon (if the degen keyword is mentioned in the degen channel post, the original heart-shaped like icon is automatically replaced with top hat), which means hats off. Bountycaster now supports the use of $DEGEN to publish bounties.
In addition, the community is also discussing donations, and one of the options is to donate a portion of the $DEGEN token supply to Farcaster for storage fees to cover the $12 registration cost for new users.
4) All these use cases and ideas are practiced and expanded spontaneously. Some are born in the tg group chat, some are in the Farcaster group chat channel Degentlemen which is currently in the trial period, and some are from degendao, showing a bottom-up and loose feature.
The community movement triggered by $DEGEN not only brought topics and contributed to the daily activity of Farcaster, but also became the top popular token in the BASE ecosystem on Dex Screener. Jesse Pollak, head of Base, thanked $degen and its founder @jacek for introducing new users to BASE. Such praise is not an exaggeration. In fact, many users logged into BASE for the first time just to receive the first round of $DEGEN airdrops. In this sense, it is BASE that needs $DEGEN, not the other way around.
Finally, let’s take a look at the market performance of $DEGEN.
Less than 20 days since its release, $DEGEN is currently at its ATH and shows no signs of slowing down. Like all small-cap tokens, $DEGEN has seen multiple sell-offs and large fluctuations, but each sell-off seems to bring more buyers and most holders continue to hold. So far, $DEGEN has 1,218 holders, a market cap of $9 million, and a 24-hour trading volume of $220,000.
$DEGEN has a promising future.
This article is for informational purposes only and is not investment advice, DYOR.
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