Flaunch: Redefining Launchpads with Fixed Price Fair Launch

Ape-tizers:

• Flaunch is a token launchpad built on Base. Each coin undergoes a 30-minute ‘Fixed Price Fair Launch,’ designed to minimize bot involvement and sniping.
• Creators can set their revenue share anywhere from 0% to 100%.
• Flaunch introduces a new Uniswap V4 hook called the "Progressive Bid Wall" (PBW).
   

When Pump.fun launched in January 2024, the crypto market changed forever.

With most coins and tokens already struggling to attract significant flows, Pump.fun delivered the final blow and opened Pandora’s box. This created an endless supply of tokens in a market where demand was struggling to keep up.

The chart below clearly shows that as soon as Pump launched, things started to spiral upward. Today, the total number of crypto tokens is approaching 50 million.

Just as we mark our years from the birth of Christ, we now view the evolution of the crypto market as a before and after in relation to Pump.fun. Gone are the days where you could throw a dart at the wall and come out on top.

Now, trends change by the hour, and the main drivers of trading happen on the memecoin launchpads.

Crypto launchpads explained

Pump.fun and similar launchpads utilize a mathematical pricing model known as the bonding curve, which outlines the connection between token supply and price.

This mechanism helps reduce dependence on presales, facilitating fair launches of memecoins, and decreasing the chances of rug pulls while ensuring liquidity for the token.

Here’s how it operates: When a token is introduced, a portion of its supply is directed into a bonding curve, with the remainder reserved to provide liquidity later. As buyers start acquiring the token, the price moves along the bonding curve, meaning that the more tokens sold, the higher the price increases.

Once the token reaches a specific price threshold, it officially “bonds” and transitions to a decentralized exchange (DEX). At this stage, the reserved liquidity is added to the DEX pool, and the liquidity provider (LP) tokens are burned, which helps prevent rug pulls and fosters trust in the system.

Pump.fun was the innovator of this model and mechanism for memecoins, establishing itself as the first mover. In retrospect, it secured a substantial share of the market.

Since then, numerous launchpads have entered the market, sparking the ongoing launchpad wars.

Today, we're discussing Flaunch, one of the newest entrants, which introduces new incentives for creators, an innovative ownership model, and other goodies.

What is Flaunch?

Flaunch is a token launchpad built on Base, leveraging Uniswap v4 to empower creators and communities to launch and trade tokenized assets, including memecoins, AI agents, and digital art.

Designed to foster fair and sustainable "meme economies," Flaunch eliminates centralized control by redistributing 100% of trading fees to developers and their communities.

At its core, Flaunch aims to democratize token creation and trading by offering permissionless tools for developers to customize tokens and earn passive income through innovative Uniswap v4 hooks like the "Meme Stream" and Progressive Bid Walls (PBW).

Key features of Flaunch

Flaunch features numerous innovative mechanisms designed to introduce a new layer of gamification that creators and communities can explore. Here are the key components that make this possible.

Launch mechanism

Flaunch's token launch process is different from competitors. Initially, each coin undergoes a 30-minute ‘Fixed Price Fair Launch,’ designed to minimize bot involvement and sniping through specific measures.

During this period, a set number of coins are available to buy at a fixed price for everyone, and any coins purchased during this period (max buy per wallet is 0.25% of the total supply) cannot be sold. Furthermore, the team recently implemented an anti-snipe mechanism that requires the user to sign a captcha.

After this period ends, all of the ETH raised moves into a PPP (Post-Purchase Pool) that sits below spot, ensuring that buyers from the fair launch period can exit at the same price (minus fees).

Revenue share

Creators on Flaunch uniquely possess the ability to choose how they want to split the revenue. They can opt to receive anywhere from 0% to 100% of the coin's fee revenue. It’s important to note that the revenue split is immutable and cannot be changed after the coin has launched.

This is a stark comparison to other platforms like Pump.fun, which rake in millions of dollars in fees and essentially extract money out of the system.

This mechanism offers numerous possibilities for token creators, enabling better alignment with their token holders.

For example, if Vitalik launches a token called VITAMIN, it could generate significant trading volume with a community that receives 100% of trading fees. Currently, the creator can add up to 100 wallets/socials that the fee can be split between. That receiver simply has to log in to Flaunch with their socials (X/Farcaster) to claim the rewards.

This would create a sustainable revenue stream for VITAMIN holders, which could be used to support public goods and charitable initiatives, while also fueling speculative activity.

Progressive Bid Wall

Depending on how the token creators allocate the revenue split, any percentage designated for the community is entirely used for token buybacks through the Progressive Bid Wall (PBW) mechanism.

The PBW mechanism is built as a Uniswap v4 hook that uses the trading fees generated by the coin to protect its own price from dropping.

Essentially, a new PBW is created for every 0.1 ETH of trading fees it receives. This places a 0.1 ETH limit order immediately below spot, reducing the impact of any sell pressure.

Creator revenue & the Memestream NFT

Whenever a coin is launched on Flaunch, the creator receives a Memestream NFT, which represents ownership of the allocated percentage revenue stream, opening up a world of possibilities.

Since revenue is streamed with each swap and paid in ETH, creators can either hold onto the NFT to generate ongoing revenue or take specific actions with their earned fees. These actions include buying tokens from the market, executing buybacks, and burning tokens.

For creators who want to receive the future revenue immediately, they can also sell this NFT to a willing buyer. Other options include fractionalizing the NFT and turning it into a DAO to create shared ownership of the revenue stream, or even borrowing against the NFT's future income.

Liquidty rehypothecation

By now, you might be asking, what's the catch? How can a team voluntarily relinquish a large part of its potential revenue? The key is in how they leverage the liquidity available within the ecosystem.

Whenever a coin is bought, Flaunch uses Uniswap V4 hooks to wrap all the ETH into flETH via AAVE. By leveraging AAVE, Flaunch is able to charge zero fees at the platform level and earn an ultra-low risk 2% yield, supporting the Flayer Foundation's growth.

How to launch a token on Flaunch

Launching a token on Flaunch is a straightforward process that takes seconds and costs $30 to create.

• Visit https://flaunch.gg/create to begin creating your token.
• Add token details: Input the token name, ticker (keep it six characters or less to enable X.com’s auto cashtags), and upload an image for your token.
• Set revenue split: Use the slider to determine the share of trading fees between you and the community. Creators can take as much as 100% of the fees (paid every swap), with the remainder automatically directed to buybacks.
• Set fee receiver: Decide who receives the creator’s share of the trading fees. You can airdrop this to anyone: an influencer, politician, public good, AI agent, or keep it for yourself. The fee receiver is transferable (as an NFT) and can be sold on secondary markets via the Memestream.
• Flaunch!: Once satisfied with your token details, click the “Create” button to deploy your token to the Base network.
• What’s the CA?: After launching, copy and share the contract address (CA) on social platforms. The first 30 minutes feature a Fixed Price Fair Launch, after which the coin enters price discovery. With your coin live, every trade generates revenue for you and your community of holders.

FLAY and the treasury

With a total supply of 1 billion, FLAY is the official token of the protocol and grants governance votes to token holders. The protocol has an option for a fee switch that FLAY holders can enable via onchain governance. If approved, the fee switch would collect up to 10% of the Flaunch protocol's trading fees.

Given that Flaunch is the result of a merger between FloorDAO and NFTX back in the summer of 2024, more than 50% of the FLAY supply was liquid from launch.

20% of the total supply is allocated to core contributors, with a 6-month cliff from TGE (September 25, 2024), vesting over 2.5 years. This is fairly typical.

Something that is entirely unusual, however, is that contributor tokens that have completed both periods(cliff and vesting) will only be distributed if the FLAY token reaches $75,000,000 FDV (based on a 7-day time-weighted average, per CoinGecko).

The oddities don’t end there. Since FloorDAO participated in an LBP (Liquidity Bootstrapping Pool) at launch and bought several hundred Miladys and a few dozen CryptoPunks to LP in NFTX, the Flaunch treasury is now completely stacked.

Featuring 5 CryptoPunks, 42 Lil Pudgys, an Autoglyph #180 NFT valued at 105 ETH, various NFT vaults on NFTX, and multiple tokens, including ETH, CULT, FLAY, MILADY, among others, the Flaunch treasury holds over $25 million.

Concluding thoughts

In crypto’s post-pump era, maintaining attention and a community around your project is damn-near impossible. People jump from one memecoin to the next, and why shouldn’t they? Staying aligned with any particular token doesn’t bring you any material return, apart from a possible moonshot. But those are few and far between.

The question remains: how do you organize and motivate people to get behind a token? By offering incentives, executing a smart launch strategy, and introducing an innovative buyback mechanism that decreases sell-pressure.

Thanks to the fair launch mechanism that allows everyone to buy the token at a fixed price before it bonds, the liquidity position is effectively burned from the moment the coin launches, with revenue streams permanently in the hands of the dev and memecoin holders.

When it comes to incentives, I reckon most creators will still choose to keep the majority of the token revenue. However, those who allocate a larger share to the token holders will gain the greatest benefits since the token holders are directly motivated to encourage trading activity.

Yes, the launchpad sector is highly competitive, but recent examples like LetsBonk show that even small improvements in creator rewards can significantly shift volumes away from the dominant player.

With Flaunch already being the most positive sum token launchpad in the market, their upcoming phase 2 will allow communities to launch subcoins that generate fees, which will then be distributed to stakers of the main coin, driving engagement and adding more value to communities.