$DEGEN: The first community memecoin of Farcaster.

2024-01-24 14:44

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Original Title: "Cobo Argus Weekly Strategy Report #8"

Original Source: Cobo Argus

Farcaster has welcomed its first community memecoin - $DEGEN

After the failure of the first four memecoins, the Farcaster community finally welcomed its first memecoin with a small-scale success - $DEGEN, which is currently ranked first in the BASE ecosystem trend on Dex Screener.

$DEGEN is a truly community-driven meme project, which is reflected in its fair distribution, grassroots atmosphere, and bottom-up expansion and promotion of organic community growth. It adopts a loose, unofficial DAO organization and build, and it is precisely this community-driven gene that gives it a natural advantage in integration and friendliness. Within less than 20 days after its launch, it has grown organically and has multiple consumption scenarios.

1) Adopt a fair distribution mechanism.

-$DEGEN token has a total initial supply of 37 billion. There is no pre-mining, and 15% of the supply tokens are reserved for ecological development with a lock-up period of more than 4 years. Currently, 1/3 of the team tokens (5% of the supply) have been locked in a 2-year ownership contract, with an unlock time of July 26, 2026. The remaining tokens are used for airdrops and liquidity rewards (initial liquidity pool tokens will be unlocked in July 24, 2024). After 4 years, there will be a permanent inflation rate of 1% per year to maintain continuous participation and contribution to Degen. For token distribution details, please check here.

2) Emerged from the Farcaster community, specifically the degen channel of Farcaster.

- 70% of the Genesis supply is allocated to the Degen community (A.K.A. the Degen channel of Farcaster) through three rounds of airdrops.

The first round of Airdrop 1 has been launched, and the application process is currently open. The token distribution rules are based on the Degen points obtained by Farcaster users' likes, reposts, and followers. Holding some community-related NFTs can also earn additional boost points. Each point can receive 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 is suitable for general degen, all the posts (casts) that can be seen everywhere in the channel are centered around the construction and narrative of Degen itself. It can be said that the Degentlemen and Degentlewomen community, which represents the Degen project, has contributed to Degen's DAU. Data shows that $Degen is the most active channel on Farcaster, even higher than the total of all other topic channels.

As a product in the exploratory stage, Farcaster's new feature testing is also accompanied by degen, the channel with the highest daily activity. For example, the degen(tlemen) channel has its own exclusive top hat like icon for likes (if the keyword "degen" is mentioned in the post content of the degen channel, the original heart-shaped like icon will be automatically replaced by the top hat icon), which symbolizes tipping one's hat in respect, hats off. Bountycaster has added support for using $DEGEN to publish bounties.

In addition, the community is also discussing donation matters, and one of the options is to donate a portion of the $DEGEN token supply to Farcaster for storage fees, to cover the registration cost of new users of $12.

4) All of these use cases and ideas are spontaneously practiced and expanded, some of which were born in the TG group chat, some in the currently trial-running Farcaster group chat channel Degentlemen, and some from Degendao, presenting a bottom-up and loose feature.

The community movement sparked by $DEGEN has not only contributed to Farcaster's topic and daily activity, but it has also become a popular token on the BASE ecosystem ranking first on the Dex Screener. Jesse Pollak, the head of Base, thanks $degen and its founder @jacek for introducing new users to BASE. Such praise is not exaggerated. In fact, many users logged into BASE for the first time 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.

Released less than 20 days ago, $DEGEN is currently at ATH with no signs of slowing down. Like all small-cap tokens, $DEGEN has experienced significant fluctuations due to multiple sell-offs, but each time the price drops, it seems to attract more buyers and most holders continue to hold. Currently, $DEGEN has 1218 holders, a market cap of $9 million, and a 24-hour trading volume of $220,000.

$DEGEN has a promising future.