Overview

A hedge fund where the management fee is the transaction tax, the LPs are the holders, and the books are a block explorer.

Most memecoins return value to nobody. They trade on attention, the attention fades, and the only thing left on-chain is a flat liquidity pool. Meme Fund inverts that. The token is a wrapper around a real, growing treasury of assets, and the act of trading the token is what funds the treasury.

Three things hold the design together:

• The tax funds the fund. A tax on every transfer is swept into a treasury and deployed into a basket of assets.
• The fund backs the token. Treasury holdings are tracked 1:1 against circulating supply and marked to a live net-asset-value (NAV) that anyone can verify on-chain.
• The holders run the fund. Token-weighted governance decides what the basket holds, and a portion of the treasury is put to work earning yield that flows back to holders as a dividend.

How it works

Follow a single dollar of tax from a trade to a dividend.

The protocol is a loop. Trading creates tax, tax becomes treasury, treasury splits into a growth sleeve and an income sleeve, and the income sleeve pays holders. Below is the flow of funds for one taxed transaction.

Stepping through it:

1. A transfer happens. Any buy, sell, or transfer of $MEME triggers a fixed-percentage transfer tax, withheld natively at the token level.
2. The treasury sweeps. Withheld tax is periodically harvested and swapped into USDC through a DEX aggregator, building a stable base of dry powder.
3. The treasury splits. By policy, roughly 90% of net treasury value is the growth sleeve (the memecoin basket) and roughly 10% is the income sleeve (a yield vault).
4. The basket backs the token. Every basket position is on-chain and counted toward NAV, so the protocol can show a verifiable backing value per token at all times.
5. The income sleeve pays out. Yield earned on the 10% sleeve is collected and distributed pro-rata to holders as a dividend.

Tokenomics & the tax

The tax is the entire business model, so its design matters more than the supply curve.

The transfer tax

$MEME is issued as a Solana Token-2022 mint using the native transfer-fee extension. A percentage of every transfer is withheld by the token program itself. There is no honeypot router contract, no off-chain trust required, and the fee is enforced at the protocol level on Solana. Fees accrue on each token account and are periodically harvested to the treasury.

Supply

Total supply is fixed at mint; there is no inflation. The treasury grows in value from tax revenue, not by minting new tokens, so backing-per-token is not diluted by emissions. Recommended allocation buckets:

Treasury & 1:1 backing

The website is the fund's NAV statement, and the chain is its auditor.

The treasury holds two things: a basket of memecoins (the growth sleeve) and a yield position (the income sleeve). Both are on-chain at known addresses, so net asset value is computable by anyone, not asserted by the team.

What "1:1 matched" means here

Backing-per-token is defined as treasury NAV divided by circulating supply:

The protocol does not promise that the market price equals backing. Markets do what they want. It promises that the backing figure is real, fully collateralized by assets actually in the treasury, and updated live. The site renders the basket holding-by-holding (asset, units held, USD value, % of NAV) alongside the income sleeve, so a holder can reconcile the displayed NAV against the chain at any moment.

The basket

The growth sleeve is a governance-curated set of memecoins with target weights. Accumulation and rebalancing execute through Jupiter DCA / TWAP rather than market orders, so large treasury moves don't move the assets against the fund. The basket can be rebalanced on a cadence or when weights drift past a band; both are governance parameters.

Governance

Holders vote the basket.

Token-weighted governance controls the parts of the protocol that involve discretion: what the basket holds, the target weights, rebalance rules, the tax rate (within its cap), and the growth/income split. Proposals follow a standard lifecycle.

1. Proposal. A holder above a proposal threshold submits a change (add/remove asset, reweight, adjust a parameter).
2. Discussion. A fixed window for debate before voting opens.
3. Vote. Token-weighted voting over a snapshot of balances, subject to a quorum.
4. Execution. Passing proposals queue through a timelock, then execute against the treasury via the keeper.

The dividend

A fund that only appreciates asks holders to sell to realize anything. The dividend gives them a reason to hold. The mechanism is deliberately boring: park a slice of the treasury in a yield source and route the yield to holders.

The income sleeve: Avantis

Roughly 10% of treasury NAV is deposited into the Avantis LP vault on Base. Avantis is an onchain perpetuals DEX whose avUSDC vault (an ERC-4626 token) is the counterparty to all trades on the platform and earns organic trading-fee yield from that activity. Historically the USDC pool has paid yields in the ~10% range, though the figure is variable and depends on platform volume and trader PnL.

Distribution mechanics

• Accrue. Yield builds in the avUSDC position on Base.
• Harvest & bridge. On a cadence, yield is realized and bridged back to the Solana treasury (e.g. via CCTP for native USDC).
• Distribute. A snapshot of holder balances determines pro-rata shares, claimable by holders (or pushed via a streaming distributor).

Architecture

A Solana token and governance layer, with a bridged income sleeve on Base.

The one genuine complication: the tax mechanism lives best on Solana (Token-2022 transfer fees + Jupiter), but the chosen yield source, Avantis, lives on Base. The treasury is therefore multichain, and the bridge between them is a first-class component, not an afterthought.

Decentralization path

The credible answer to "your vote always wins": say when it stops.

Stewardship is a launch condition, not the destination. A published path turns a centralization weakness into a roadmap commitment.

Each transition should be on-chain and visible: reserve size, quorum, and timelock parameters published, so "we'll decentralize" is measurable rather than promised.

Risk factors & disclaimers

An on-chain fund of memecoins paying a dividend is roughly as risky as that sentence sounds. Read before deploying capital.

Protocol & market risk

• Basket volatility. Memecoins are highly volatile and can go to zero; NAV can fall sharply and illiquid positions may be hard to exit at marked value.
• Smart-contract risk. Bugs in the token, treasury, governance, or distributor contracts could cause loss. Audit everything; nothing here is audited yet.
• Bridge risk. Moving the income sleeve between Solana and Base exposes treasury value to bridge security.
• Yield-source risk. Avantis LP yield is variable and can be negative when traders win against the vault; the ~10% figure is illustrative, not guaranteed. The dividend is not guaranteed.
• Price vs backing. Market price may trade well below NAV; backing is collateralization, not a redemption guarantee unless a redemption mechanism is explicitly implemented.
• Governance concentration. During the steward phase, the founding entity can determine outcomes. Holders are trusting that stewardship.
• Tax friction & venue support. Transfer-fee tokens can be unsupported or mishandled by some venues, wallets, and routers; integrations need testing.