There are some major problems with token issuances today, particularly in the category of memes: "Liquidity Farming", "Token distribution" and a fair "Token Presale".

This method serves to resolve these issues in real time. It's going to be tested but ultimately these are the problems it addresses:

Liquidity farming is the process where an anonymous deployer releases 100% of the supply into a liquidity pool. Then, immediately, a distributed bot army of his creation swiftly buys up greater than 60% of the supply from the pool. With that many tokens, the deployer now has dominance over the price movement of the token. Then, retail is brought in via marketing. As they come in and buy, the liquidity is then sold into the pool with the deployers immense supply. This mostly causes the initial pump and dump you see on most meme tokens brought into the world. Often referred to as a "slow rug", eventually the deployer has extracted more liquidity than they spent and at some point can either dump the rest of the supply or whatever else they set up in order to harvest end stage liquidity.

During this initial phase of liquidity farming, Token Distribution occurs, where many wallets receive the tokens, often at high prices that are unlikely to be seen again. By nature, it causes an unfair token distribution and because of the anonymous nature of these deployers, they are able to pretty much, take the money and run. Because of their dubious ways, I will refer to deployers who do this as "Black hat".

The Token Presale approaches the matter separately and incompletely. This is a method where tokens are allocated to buyers at a given price, then distributed before any trading occurs and then once out on the pool, guess what? Number go down. Why? Because what is actually happening under the hood is that bot army I was talking about can just buy from the initial token sale instead of racing for supply at the pool's open.

Let's introduce the methods I described here, based on an upcoming high value meme: COCO, the crocodile who snaps, flips, and drags you under the water.

Coco on ETH was distributed, 100% supply to the pool, and the entire thing I described occurred (save for the token presale part) there. For the record these tokens can have a life outside of that initial pump and dump. As COCO on ETH is still strong and growing as the meme's oldest currency, long after those black hats have moved on to other rugs.

Then, $NAP, that's SNAP for non dollarists, another COCO derivative on Solana, took the presale approach and raised a whopping ten million dollars. All of which was distributed into the liquidity pool. (In my opinion, it was kind of a management blunder because no marketing budget etc) but fundamentally, all the black hats had to do in this case, was just to buy an overpowering amount of presale tokens via bot army and the same ratio of black hat holdings to retail occurs.

So this week (late July 2024) I will thereby take these lessons and release my own version of the token project on an upcoming meme chain which is famous on telegram called TON COCO or TOCO.

https://cocoonton.com/

Here's what I intend to do and how it will address all of the problems above:

The pool will be seeded by depositing $200 USD into the pool with a small percent of the supply, these LP tokens burned. As buys come in, buys will be matched with sells, and then liquidity will be added to the pool with the TON earned. Revenue from 25% of these sells will be held on the side, in pure TON, into a community fund, to fund marketing and pay for expenses like accounts, subscriptions, products and updates. The marketcap of the coin will be suppressed to be within the 25k to 100k range. This will favor retail buyers and allow most people to have a similar, fair cost basis for the token.

To clarify, Here's an example:

• user buys 11 TON worth of TOCO from the pool
• 10 ton worth of initial supply is sold into pool at current price
• pool is supplied with 7.5 ton of liquidity and 7.5 ton worth of TOCO
• 2.5 TON in pure ton is set aside for operation expenses

TOCO will be a community token, the buyers will earn a stake in the coin by purchasing directly from the pool, where the price is normalized / suppressed until the initial supply is distributed.

Disclaimers

• this range may go higher based on demand or purchaser behavior, or amount of funds needed versus what is actually coming in.
• This is an experiment — results may differ wildly.
• Pool seeding transactions are manual and will occur at various, unpredictable times.
• Once a seeding transaction occurs, LP should be added fairly quickly as long as dev is awake. (yes, devs sleep too, this one keeps GMT+7 hours)

Token allocations.

The next item to discuss here are token allocations. TOCO will use escrow contracts to distribute TOCO and a percentage of LP Tokens fairly over time.

The dev, (currently me) will receive a 20 month salary of token supply deferred 30 days from completion of the pool seeding process. The payments will be 1,050,172,500 TOCO and in total will equal 10% of the entire supply. Dev is able to buy more tokens or sell any vested tokens earned as paid by the escrow contract.

50 percent of the supply will be seeded into the pool using the method above. Should the community decide that there is a need to generate further liquidity or TON to handle costs, there will be a non-nerdy way to get a community decision through to handle matters like this. Opinion — Nobody cares about DAO's but decisions will need to be made, e.g. roadmap…

The LP tokens which serve an essential role will be distributed as such:

Initial 200 USD worth of liquidity tokens will be burned forever.

During seeding phase, dev will reserve the LP tokens. 15% of them will be burned forever once seeding is complete. Community fund will hold 50% of the LP tokens for strategic reasons. The remaining 35% of the tokens will be distributed to valued community members, using distributed tapering escrow periods.

The remaining 40% of the TOCO tokens will be used or burned as the community decides, but the main intent is that they are used as some sort of program to incentivize holders of LP down the road for when the escrow unlocks.

One final note, unless the community requires it, key opinion leaders and marketers will NOT be offered supply in return for their participation. This practice is problematic in nature and TOCO should appreciate in value as the COCO meme gets adopted regardless.

Finally lets review the goals set out for this token seeding operation:

• More people get a fair price
• Snipers get left out
• Community holds an amount of liquidity
• Funds are raised in TON without having a token sale
• escrow accounts add control over further token distribution
• dev is rightfully paid in a transparent and accountable manner

Please feel free to hit me up in the telegram room if you have further questions as this is an ongoing experiment and project!

Follow up:

So, now that it's a couple days past opening the liquidity pool, I'd like to introduce some thoughts:

Ultimately COCO on TON is a community project, and at the moment there really isn't a community because it's so new. Given that, I chose the token distribution methods above — to only bring people who understand the underlying value of COCO including all chains and projects to the table to bring forth the project on TON.

Investors looking to gain a large amount of supply early on are ok, but TOCO will not be subjected to the typical pump and dump distribution method, where a shadowy dev shoves large amounts of tokens into snipers hands and then dumps the rest of the tokens into the pool, and making off with all the money.

People who want to make 1x or 2x are going to have a difficult time with the price suppression methods above, and there is a plan for that. It involves time and dedication. To me, a trade of one or two x early on in a project is unworthy, so I dont want those people either which rules out many of the degen token traders. People here should accept that it's going to take a while, and since its a community based operation, it is really up to them to help get the word out about the project.

Why would I cut out pretty much everyone with this method? Well the people who deserve the token at a low market cap are the ones who are going to support it. The ones who actually believe in the token. Those who understand how memes tend to spike around market tops and bitcoin is just getting started on a run that will last for another year and a half.

Nope, no point in selling here.

Early investors will also be rewarded. 50% of the initial supply will be distributed this way but in phases of 10% supply each. Each new 10% of the supply the price will be allowed to move higher to another level, similar to how token sales have the initial sale, early sale, and late sales at different price points.

This method mimics a token sale except its 100% fair and public. The most important difference is that unlike a token sale, anyone is free to exit at any time. This will in turn hopefully avoid the token sale / distribution dump that always occurs once trading begins of any token, because trading has already started.

now as for the phases it's very simple. phase 1: distribution between 25k and 50k phase 2: distribution betweek 45k and 65k phase 3: distribution between 60k and 80k phase 4: distribution between 75k and 100k

phase 5 is going to be different. The remaining ten percent of tokens will be distributed to those who help through the phases, favoring the earliest buyers and accumulators with no sells + people showing community engagement and optimism for the coco ecosystem.

Finally, let us not forget what will also happen with the remaining LP tokens. After the distribution phase is complete, 50% will be held by the community wallet. 35% will be given to be top holders / preferred community members, and the remaining 15% will be burned.

Of course there will be escrow contracts attached to any type of giveaway or rewards where a user must wait a mandatory period before being able to "dump it".

In progress are the escrow contracts as well as planning ahead for how to handle distribution of the remaining supply.