Memeverse Reserve Fund

The Memeverse Reserve Fund is established during the genesis phase of Memecoin, so each Memecoin has its own reserve fund. During the genesis phase, 20% of the UPT minted by investors are allocated to the reserve fund. When the reserve fund is fully constructed, it initially contains only UPT, with no Memecoin. The benchmark price of Memecoin set in the reserve fund is anchored to the initial price at the time of open trading.

The reserve fund is accessible to everyone, allowing anyone to utilize its funds. Users can use the reserve fund to buy back their Memecoin at the initial price or sell Memecoin from the reserve fund. It's important to note that when using the reserve fund to buy back Memecoin, 20% of the Memecoin will be burned first. Conversely, purchasing Memecoin from the reserve fund will incur a 20% premium, meaning an additional 25% of fund tokens will be required to purchase Memecoin. The reserve fund serves multiple purposes and is an integral part of the Memeverse ecosystem.

• Price Support: Since anyone can use the funds in the reserve fund to trade around the initial price of Memecoin, it will provide strong price support for Memecoin. Additionally, as trading continues, the size of the reserve fund will expand, offering even stronger price support.

• Assisting Deflation: When using the funds in the reserve fund to buy back Memecoin, a portion of the Memecoin will be burned. This will help with the deflation of Memecoin, reducing the circulating supply in the market.

• Price Arbitrage: When the market price of Memecoin falls below a certain threshold, users can buy Memecoin from the market and then use the reserve fund to repurchase and complete arbitrage. Conversely, if the reserve fund holds Memecoin and the market price of Memecoin rises above a certain threshold, users can purchase the previously repurchased Memecoin from the reserve fund and sell it on the market to complete arbitrage.

The Memeverse Reserve Fund plays a crucial role, as not all Memecoins will experience an immediate price surge after launch. Most Memecoins will go through a challenging phase where their prices struggle near the initial offering price. During this phase, the Memeverse Reserve Fund can support the growth of these Memecoins. However, if a Memecoin's price surges immediately after launch and never drops, the Memeverse Reserve Fund may remain unused, serving as a redemption fund similar to that of PeopleDao.