How Meteora is reshaping the meme coin ecosystem on Solana: from speculation to sustainability

Meme coins have become a cultural phenomenon in the crypto market, blending internet meme culture with trading enthusiasm. Solana, with its low gas fees and lightning-fast transaction speeds, has become the main battleground for meme coins. As of January 2025, the total market capitalization of meme coins within the Solana ecosystem has exceeded $18 billion.

Amid this wave, Meteora has emerged as a brand-new DeFi protocol. Unlike traditional meme coin platforms, Meteora not only addresses long-standing industry pain points but also aligns the interests of creators and holders through innovative revenue sharing mechanisms.

Why the Existing Meme Coin Model Is Outdated

The Three Major Problems in the Industry

Hoarding and Dumping Cycles Become the Norm

Most meme coins share the same fate: prices surge due to hype, then crash as large holders exit. This pattern damages not only late-entry retail investors but also erodes trust in the entire ecosystem.

Disconnection Between Creators’ Interests and Holders

In traditional models, creators profit quickly through token issuance and fundraising, then disappear. But holders must endure long-term price volatility and liquidity risks. This imbalance in incentives makes it difficult to build a stable community.

Wasted Liquidity Lockups

To gain traders’ trust, meme coin creators often lock large amounts of liquidity permanently. While this boosts confidence, it also wastes revenue that could be used for project operations and development.

Meteora’s Breakthrough Approach

Continuous Fee Sharing Mechanism

Meteora introduces a disruptive concept: generating trading fees continuously from locked liquidity. This means creators and early holders no longer profit from a one-time event but share in the project’s long-term success. This “shared interest” design naturally incentivizes more responsible project management.

Dynamic Fee Structure

The protocol adopts a floating fee model ranging from 0.15% to 15%, which adjusts automatically based on market conditions. This ensures trader participation and optimizes liquidity provider returns.

Eco-Incentive Feedback Loop

20% of each transaction fee flows to trading bots and integrators, creating a positive feedback cycle—more participants lead to a more active ecosystem, higher fees, and attract even more users.

Meteora and Pump.fun: Two Different Evolution Paths

Although both platforms serve as incubators for meme coins, they embody entirely different philosophies.

The key difference lies in philosophy

Pump.fun focuses on trading convenience and participant diversity. Meteora aims to build a “stakeholder community,” where each participant has incentives to maintain ecosystem health.

While Pump.fun users may leave after trading, Meteora’s users are designed to be long-term stakeholders. One is a trading platform, the other an ecosystem.

Moonshot and Jupiter’s Strategic Deployment

Deep Integration of Moonshot

As the largest meme coin trading aggregator on Solana, Moonshot integrates Meteora’s pools. This means tokens launched via Moonshot can seamlessly access Meteora’s permanent locked liquidity mechanism.

Especially with Moonshot’s daily reward system—awarding top holders with LP tokens daily—this further incentivizes long-term holding. This collaboration reflects a shared vision: shifting from speculative culture to community building.

Jupiter’s Infrastructure Support

Jupiter, as Solana’s largest DEX aggregator, enhances Meteora by providing another layer of empowerment. Jupiter’s vast user base and liquidity depth directly improve the tradability and discoverability of Meteora tokens.

The integration of both ecosystems offers a complete lifecycle support from birth to maturity for meme coins.

M3M3: From Speculators to Participants

How “Stake-to-Earn” Changes the Game

M3M3 is Meteora’s staking platform, with a core innovation: transforming passive token holders into active ecosystem participants.

Staking Revenue Mechanism

Holders can stake tokens to share in fees from locked liquidity pools. Every transaction provides passive income to long-term holders. This is healthier than simple inflation models—revenue comes from actual trading activity, not just token issuance.

Endogenous Mechanism Against Volatility

Staking incentives significantly reduce the motivation to sell tokens. When holders can earn stable income from the token itself, why rush to liquidate? This design naturally stabilizes prices and benefits the entire ecosystem.

Accelerated Compound Effect

Collected fees are automatically reinvested, causing returns to compound. Early stakers gain exponential advantages—time becomes the best investment tool.

From Zero-Sum to Positive-Sum

The deepest change in M3M3 is psychological. Holders are no longer gambling on a token’s price increase but participating in a real business ecosystem. When everyone hopes for active trading and community growth, it becomes a true “community.”

Five Quick Steps to Enter the Meteora Ecosystem

1. Launch Your Meme Coin

Open Meteora’s Mint tool, fill in the token name, symbol, and initial supply. The interface is designed so even complete beginners can complete the process in minutes.

2. Deploy Liquidity

Deposit SOL or other supported tokens as initial liquidity. This step is crucial—the depth of liquidity determines trading smoothness.

3. Permanent Lock and Community Commitment

Confirm liquidity lockup, which will remain in the protocol forever. This action sends the strongest signal to the community: creators won’t run away.

4. Start Accumulating Fees

Once someone trades your token, fees begin flowing in. You can track this in real-time on Meteora’s dashboard.

5. Stake in M3M3 for Compound Growth

Transfer tokens to M3M3 staking, where each new fee cycle automatically increases your share, creating a snowball effect.

From Meme Coin Hype to Sustainable Ecosystem

Meteora represents an important turning point in the meme coin market. It doesn’t seek to eliminate speculation but to incorporate it into a larger sustainable framework.

Through mechanism design, it aligns the interests of all participants. Creators are motivated to operate good projects because fees continuously flow in. Holders are motivated to engage with the community because ecosystem growth directly increases their earnings. Traders benefit from liquidity, as liquidity providers are incentivized by ongoing fees.

This multi-win pattern is precisely the transition of the crypto ecosystem from “wild growth” to “civilized evolution.”

Investing in meme coins remains highly risky. High volatility and speculation still exist. But Meteora at least offers a new option: you don’t have to choose between gambling and abandonment—you can also become a builder of the ecosystem.