Meme MountainMethodology

Introduction

The Meme Mountain Contest is designed to evaluate and rank memecoins within the TON ecosystem based on a comprehensive set of metrics that measure engagement, retention, and overall activity. This methodology document outlines the criteria, metrics, and calculations used to determine the standings of participating memecoins.

Eligibility Criteria

To participate in Meme Mountain, memecoins must meet the following criteria at the start of the season:

1. Registration on CoinGecko:

   • The token must be listed on CoinGecko as a TON Meme coin. If you applied for listing, use the form on https://ton.org/en/memelandia to accelerate the process.

2. Market Capitalization:

   • The token must have a market capitalization greater than $250,000 USD for Minor League and greater than $1,000,000 USD for Major League.

3. Average Trading Volume:

   • The token must have an average daily trading volume exceeding $5,000 USD over the past 7 days.

4. Number of Holders:

   • The token must have more than 1,000 unique holders.

5. The token must be fairly launched

Key Metrics

The overall performance score for each memecoin is calculated using the Token Engagement Index (TEI), which combines on-chain and off-chain metrics.

Token Engagement Index (TEI)

Formula:

$$\text{TEI}=(0.4\times {\text{BRR}}_{\text{norm}}+0.3\times {\text{RR}}_{\text{norm}}+0.3\times {\text{Social Score}}_{\text{norm}})\times (1+{\text{TA}}_{\text{norm}})$$

• BRR_norm: Normalized Buyer Retention Rate.
• RR_norm: Normalized Retention Rate (Diamond Hands).
• Social Score_norm: Normalized Social Engagement Score.
• TA_norm: Normalized Total Activity.

Components of TEI

1. Buyer Retention Rate (BRR)

Definition:

• BRR measures the proportion of buyers who make repeat purchases of the token during the season.

Calculation:

1. Identify Buyers:

   • Count the total number of unique buyers who purchased the token during the season.

2. Identify Repeat Buyers:

   • Count the number of these buyers who made additional purchases on different days within the season.

3. Compute BRR:

   $$\text{BRR}=\frac{\text{Number of Repeat Buyers}}{\text{Total Number of Buyers}}$$

Normalization:

• BRR_norm is normalized between 0 and 1 using min-max normalization:

  $${\text{BRR}}_{\text{norm}}=\frac{\text{BRR}-{\text{BRR}}_{\text{min}}}{{\text{BRR}}_{\text{max}}-{\text{BRR}}_{\text{min}}}$$

2. Retention Rate (RR) - Diamond Hands

Definition:

• RR reflects the proportion of token holders who have held their tokens continuously without selling or transferring, measured over predefined holding periods (Diamond Hands Tiers).

Diamond Hands Tiers:

Tier	Holding Duration
Tier 1	7 - 15 days
Tier 2	16 - 30 days
Tier 3	31 - 50 days
Tier 4	51 - 90 days
Tier 5	91 - 125 days
Tier 6	126+ days

Calculation:

1. Categorize Holders:

   • Assign holders to tiers based on how long they have continuously held at least $50 USD worth of tokens without selling or transferring.

2. Compute RR:

   • Calculate the weighted sum of holders in each tier, assigning higher weights to longer holding periods.
   $$\text{RR}=\sum _{i=1}^6(\frac{\text{Number of Holders in Tier }i}{\text{Total Holders}}\times {\text{Weight}}_i)$$
   • Weights: Assign weights proportionally to the tier levels (e.g., Tier 1 = 1, Tier 2 = 2, …, Tier 6 = 6).

Normalization:

• RR_norm is normalized between 0 and 1 using min-max normalization:

  $${\text{RR}}_{\text{norm}}=\frac{\text{RR}-{\text{RR}}_{\text{min}}}{{\text{RR}}_{\text{max}}-{\text{RR}}_{\text{min}}}$$

3. Social Engagement Score

Definition:

• Measures the off-chain community engagement of the memecoin project, focusing on Twitter activity.

Calculation:

We use the Weighted Activity Index (WAI) to calculate the Social Engagement Score.

Weighted Activity Index (WAI)

Purpose:

• Provides a simple and effective way to evaluate social activity while balancing potential bot manipulation using smart followers and smart mentions.

Metrics Used:

• F: Total number of followers.
• M: Number of mentions (@mentions) over the season.
• P: Number of original posts (tweets) over the season.
• E: Average number of engagements per post (likes, retweets, comments).
• SF: Number of smart followers.
• SM: Number of smart mentions over the season.

Calculation Steps:

1. Compute Base Social Index (BSI):

   $$\text{BSI}=(F\times 0.25)+(M\times 0.25)+(P\times 0.25)+(E\times 0.25)$$

2. Compute Audience Quality Coefficient (AQC):

   $$\text{AQC}=1+(\frac{\text{SF}}{F}\times 0.5)+(\frac{\text{SM}}{M}\times 0.5)$$
   • If F or M is zero, the corresponding fraction is set to zero.

3. Compute WAI:

   $$\text{WAI}=\text{BSI}\times \text{AQC}$$

4. Normalization:

   • Determine the maximum WAI among all participating tokens (WAI_max).

   • Normalize WAI:

     $${\text{Social Score}}_{\text{norm}}=\frac{\text{WAI}}{{\text{WAI}}_{\text{max}}}$$

Interpretation:

• The WAI accounts for overall activity and audience quality.
• Projects are rewarded for attracting real and high-quality followers, while potential bot manipulation is mitigated.

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4. Total Activity (TA)

Definition:

• TA represents the trading activity relative to the circulating market capitalization of the token.

Calculation:

1. Compute TA:

   $$\text{TA}=\frac{\text{Total Trading Volume during the Season}}{\text{Circulating Market Capitalization}}$$
   • Trading Volume: Sum of all trading volumes across exchanges where the token is listed.
   • Circulating Market Capitalization: Average over the season.

Normalization:

• TA_norm is normalized between 0 and 1:

  $${\text{TA}}_{\text{norm}}=\frac{\text{TA}}{{\text{TA}}_{\text{max}}}$$
  • TA_max: The maximum TA value among all participating tokens.

Final TEI Calculation

• TEI combines the normalized metrics with assigned weights:

  $$\text{TEI}=(0.4\times {\text{BRR}}_{\text{norm}}+0.3\times {\text{RR}}_{\text{norm}}+0.3\times {\text{Social Score}}_{\text{norm}})\times (1+{\text{TA}}_{\text{norm}})$$

• Interpretation:

  • The TEI score reflects the overall engagement and activity of the token, considering both on-chain and off-chain factors.
  • Higher TEI indicates stronger performance.

Data Collection and Verification

On-Chain Data

• Sources:

  • TON blockchain explorers and analytics platforms.

• Data Points:

  • Transactions, holders, trading volumes, liquidity pools.

• Anti-Cheat Measures:

  • Sybil Attack Detection:
    • Exclude suspicious addresses linked to sybil activities.
    • Ignore wallets holding less than $50 USD worth of tokens to ensure genuine participation.
  • Data Validation:
    • Cross-reference data from multiple sources.

Off-Chain Data

• Sources:

  • Twitter and Moni Discover API.

• Data Points:

  • Follower counts, post engagements, follower growth, smart followers, and smart mentions.

• Anti-Cheat Measures:

  • Bot Detection:
    • Use tools to detect and exclude fake followers and engagements.
  • Quality Checks:
    • Analyze the authenticity of followers and interactions using Moni Discover's smart metrics.

Example Calculation

Assumptions

• Participating Tokens: Token A, Token B, Token C.

Step-by-Step Calculation

1. Calculate BRR for Each Token

• Token A:

  • Total Buyers: 1,000
  • Repeat Buyers: 400
  • BRR:
    $$\frac{400}{1,000}=0.4$$

• Token B:

  • Total Buyers: 800
  • Repeat Buyers: 480
  • BRR:
    $$\frac{480}{800}=0.6$$

• Token C:

  • Total Buyers: 1,200
  • Repeat Buyers: 360
  • BRR:
    $$\frac{360}{1,200}=0.3$$

• BRR_min: 0.3, BRR_max: 0.6

• Normalize BRR:

  • Token A:

    $${\text{BRR}}_{\text{norm}}=\frac{0.4-0.3}{0.6-0.3}=\frac{0.1}{0.3}\approx 0.333$$

  • Token B:

    $${\text{BRR}}_{\text{norm}}=\frac{0.6-0.3}{0.6-0.3}=1$$

  • Token C:

    $${\text{BRR}}_{\text{norm}}=\frac{0.3-0.3}{0.6-0.3}=0$$

2. Calculate RR (Diamond Hands) for Each Token

• Assign Weights to Tiers:

  Tier	Weight
  1	1
  2	2
  3	3
  4	4
  5	5
  6	6

• Token A:

  • Calculate RR using weighted sum based on holders in each tier.

• Normalization:

  • RR normalized across tokens similarly to BRR.

3. Calculate Social Score for Each Token Using WAI

• Token A Metrics:
  • F = 1,000
  • M = 200
  • P = 50
  • E = 100
  • SF = 10
  • SM = 5

1. Compute BSI:

   $${\text{BSI}}_A=(1,000\times 0.25)+(200\times 0.25)+(50\times 0.25)+(100\times 0.25)=337.5$$

2. Compute AQC:

   $${\text{AQC}}_A=1+(\frac{10}{1,000}\times 0.5)+(\frac{5}{200}\times 0.5)=1+0.005+0.0125=1.0175$$

3. Compute WAI:

   $${\text{WAI}}_A=337.5\times 1.0175=343.41$$

4. Normalize Social Score:

   • If WAI_max among all tokens is 400:

     $${\text{Social Score}}_{\text{norm},A}=\frac{343.41}{400}=0.8585$$

4. Calculate TA and TA_norm

• Token A:

  • Trading Volume: $500,000
  • Circulating Market Cap: $250,000
  • TA:
    $$\frac{500,000}{250,000}=2$$

• TA_max among all tokens.

• Normalize TA:

  $${\text{TA}}_{\text{norm},A}=\frac{2}{{\text{TA}}_{\text{max}}}$$

5. Compute TEI for Each Token

• Example for Token A:

  $${\text{TEI}}_A=(0.4\times 0.333+0.3\times {\text{RR}}_{\text{norm},A}+0.3\times 0.8585)\times (1+{\text{TA}}_{\text{norm},A})$$

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Final Rankings

• Tokens are ranked based on their TEI scores.
• The memecoin with the highest TEI is considered the most engaged and active within the season.

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Meme Mountain Reward Distribution Plan

Total Reward Pool

Milestone-based:

• $200 million total trading volume: $150k
• $400 million total trading volume: $250k
• $600 million total trading volume: $400k
• $800 million total trading volume: $500k

Total Reward Pool Split

Trading Volume	Total Rewards	League	1st Place	2nd Place	3rd Place
$200 million	$150,000	Major	$45,000	$30,000	$15,000
		Minor	$37,500	$22,500	-
$400 million	$250,000	Major	$75,000	$50,000	$25,000
		Minor	$62,500	$37,500	-
$600 million	$400,000	Major	$120,000	$80,000	$40,000
		Minor	$100,000	$60,000	-
$800 million	$500,000	Major	$150,000	$100,000	$50,000
		Minor	$125,000	$75,000	-

Community Rewards

1. Holder Rewards (35% of Community Pool)

• Distribution proportional to holding time and volume.
• Utilizes "Diamond Hands Tiers" system.
• Minimum holding threshold: $50 USD worth of tokens.

2. Active Trader Rewards (50% of Community Pool)

• Distribution based on trading volume.
• Ranking system (e.g., top 1%, top 5%, top 10% traders).

3. Social Activity Rewards (15% of Community Pool)

• For creating quality content (memes, threads, articles).
• For active participation in discussions and project promotion.