A new token Meteora-backed token, M3M3 is building up hype with its combination of staking and meme community fundamentals. The asset hinges on strong hands holding for the long term, with the added security of locked tokens.
The M3M3 token is a Solana asset that aims to combine meme hype with staking. The token has been heavily promoted by influencers, and a significant part of its supply already has been locked in staked positions.
The new trend has already built up 10.4K followers on X, and a total of 19,523 holders. At this level, M3M3 resembles an early-stage meme token. This time around, new buyers are urged to also stake their tokens for rewards.
Meteora boosts M3M3 for its native DEX token
The appeal of M3M3 comes from Meteora, one of the rising DEX platforms on Solana. Meteora is not at the level of Raydium and Orca, but it has also benefitted from the meme token boom. The exchange has now introduced its native token, similar to RAY or JUP, tapping users seeking passive income.
Meteora has set up three chief roles for M3M3 – as a launchpad token for third-party startups, as a general staking token, and as a liquidity token for meme creators to boost their initial liquidity. M3M3 aimed to serve as a version of SOL specifically for the Meteora ecosystem.
M3M3 was created with a supply of 999,999,926 tokens, of which 167,035,922 are already staked. It is precisely the staking use case that is the leading narrative for this asset. Meteora claims to have distributed more than $3.11M in staking rewards.
The M3M3 staking comes with a warning – whales are quickly making their entries. Commenters are also trying to enter the top 100 wallets, which are the only stakers that earn rewards. Its tokenomics model creates an inherent competition for the top spots, which adds to the demand for M3M3.
Meteora, the token’s issuer, notes the new tokenomics allows holders to move beyond the PvP aggressive trading model, instead competing to buy more and take one of the valuable spots among the top 100 holders.
Once a staker secures one of the spots, they earn both SOL payouts and additional M3M3. Once again, there is an incentive not to sell, but to hold. This type of tokenomics does not look for endless increments in buyer count but for competitive buying among holders, leading the underlying asset to trade higher.
The M3M3 model resembles the Olympus DAO and its OHM staking token, which collapsed under its promised high APY.
The other problem with the new token is the prevalence of insiders, who may be controlling the supply. There are no high-value whale wallets, but the supply has been split into wallets with exactly 0.75% of the supply, based on BubbleMaps data.
Users find workaround for M3M3 unstaking issues
In addition to the social media drive to stake more M3M3, the asset had a small technical glitch, which prevented immediate unstaking. The token’s front end unstaking link does not allow for withdrawals. The Meteora team, which claims to support the token, has not commented on the limitation or whether it is deliberate or a mistake.
Users have found a workaround for the M3M3 unstaking limitation by removing a hard-coded value to release the tokens.
One of the reasons for unstaking is the spectacular run of M3M3 as a short-term trading bet. M3M3 launched at $0.001 on December 4, quickly rallying above $0.12. The token is gaining speed and liquidity, potentially leading some early stakers to liquidate their holdings.
M3M3 still has a market capitalization of just $125M, with $2.2M in locked liquidity. The staking rewards exceed the token’s market capitalization, which may further incentivize holders. However, M3M3 is also considered a relative risk due to its high reward rate. Meteora claims to be able to provide returns even if M3M3 market prices go lower, based on its DEX activity.
Traders are also looking at M3M3, expecting its tokenomics model to lead it to a higher price range. Not all ecosystem participants will move in as buyers, and some will bet on the speculative value of the asset. The M3M3 model is spreading to other DEX and DeFi protocols, as a way of encouraging buying and long-term holding.
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