Understanding The $Trump Launch: $SOL and Ecosystem Having a YUGE Day
Note: this is a retroactive add to match X publication on (01/18/2025)
DVM View: The $TRUMP launch, ahead of his inauguration in 2 days, was nothing like we’ve seen before (see our short note last night at $6B FDV, notifying our audience). Overnight, $TRUMP garnered over ~$8B in on-chain volume, attained 500k holders, and became the #10 ranked token by MCap (and #2 meme behind $DOGE). To us, the story is more about $SOL, which stands to have its largest fee day (ever) as fees increased ~250% d/d; with LPs taking in $20m in fees. Furthermore, $SOL benefitted from $70b of inflows, from mainly $ETH/$37b, $ARB/$17b, and $BASE/$16b, as a coordinated effort should stand to benefit ecosystem partners including @JupiterExchange ($JUP), @MeteoraAG, @moonshot, and @deBridgeFinance ($DBR). We think the activity is being captured in $SOL’s move this morning (+17% to $250+). In terms of rotation, many tokens had liquidity drawn and are down double-digit %, and have not recovered. Within our coverage list, the only ones to attain prior levels have been $FARTCOIN and $LLM.
Solana is the Biggest Beneficiary | Fees up ~250%
$SOL avg/Tx fees are up ~250% on non-voting transactions, according to @Dune dashboard. We note this could imply that yesterday’s daily revenues of $4.7m, according to @tokenterminal, are slates to be in excess of $15m today, marking a 365D high (and potentially all-time) in one-day vs. the last high-water mark in Nov. 21 2024 high of $13.5m.
$SOL Receives ~$70b in Incremental Volume from Other Chains | A Ripple Effect
The majority of the ~$70b billion flow came from Ethereum, with $37b transferred. Second was Arbitrum ($ARB) with $17b and lastly $Base with ~$16b.
Tokenomics | LPs Took in $21m in Fees, A Slow Release Vesting Schedule
As per the data depicted on @MeteoraAG, its noted that LPs have generated over $21m in fees incurred out of 38 $TRUMP/$USD pools.
-Token Generation Event (TGE): 10% of tokens were immediately unlocked for liquidity, and another 10% for public distribution.
Allocation is as follows:
-Creators & CIC Digital, 1: 36% with a 3-month lock-up, 10% at initial cliff, then 24 months of daily unlocks.
-Creators & CIC Digital, 2-6: Various percentages with lock-ups ranging from 3 to 12 months, initial cliffs between 10% to 25%, followed by 24 months of daily distribution.
-Autonomous Execution: After TGE, distribution was managed by a blockchain program to pre-set wallets, ensuring no human intervention.
-Controlled Release: Tokens are to be released over a 36-month period to prevent market flooding.
Ecosystem Partners | Big Effort, Hats off to Solana and Partners
-Moonshot: @moonshot provided infrastructure for token creation and trading, essential for the $Trump launch.
-JupiterExchange: @JupiterExchange collaborated with Meteora for the launch on its Dynamic Liquidity Market Maker (DLMM) platform. This partnership utilized Jupiter's infrastructure to facilitate trading across the Solana ecosystem. Jupiter's token verification process was used to identify and filter out potential scam tokens during the launch.
-Meteora: Utilized its DLMM platform for liquidity management during the token launch. The collaboration with JupiterExchange involved using Jupiter's APIs for trading and verification across the ecosystem, including Moonshot. The launch used the same Launchpad for Growth (LFG) stack as $JUP, including the DLMM pool for liquidity management, ILM (Initial Liquidity Mining) design for incentivizing early liquidity, and integration with Jupiter's platform for trading capabilities. Its noted that the main LP paired on @MeteoraAG has generated over $21 M in fees which will be distributed among LP providers.
-Debridge: @deBridgeFinance supported cross-chain functionality, enhancing the token's reach and utility by facilitating significant transfers from other blockchains to Solana.
