# **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**:

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

- **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.

$$
\text{RR} = \sum_{i=1}^{6} \left( \frac{\text{Number of Holders in Tier } i}{\text{Total Holders}} \times \text{Weight}_i \right)
$$

- **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)**:

$$
\text{AQC} = 1 + \left( \frac{\text{SF}}{F} \times 0.5 \right) + \left( \frac{\text{SM}}{M} \times 0.5 \right)
$$

- 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.

---

#### **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:

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

- **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**:

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

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**:

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

---

## **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.

---

# **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.