Profit Distribution
Profit Distribution Explained
To ensure transparency and clarity, here’s how Meme Fund will distribute profits, taking into account the soft cap ($500k) and hard cap ($1M) fundraising goals, as well as expenses for setting up the necessary infrastructure and systems.
Fundraising Goals
Soft Cap: $500,000
Hard Cap: $1,000,000
Tokenomics Breakdown - Proceeds from the fundraising are allocated as follows:
Trading Capital: 70%
Setup and Operational Costs: 20%
Reserve for Risk Management: 10%
Allocation of Funds
Trading Capital (70%)
The bulk of the funds is dedicated to trading strategies and investments:
Private Allocations: Early-stage opportunities in promising meme coin projects.
Market Making: Providing liquidity to generate volume.
Algorithmic Trading: Utilizing bots for arbitrage, sniping, and high-frequency trading.
Setup and Operational Costs (20%)
This covers the essential infrastructure to manage the fund effectively:
Trading Platforms (e.g., Fireblocks): Securely managing and deploying funds.
Sniper and Trading Bots: For executing high-frequency trades and capturing launch opportunities.
Shilling and Marketing Systems: Including bot-driven engagement to amplify market influence.
AI Agent Development: Advanced tools for sentiment analysis and trading optimization.
Reserve for Risk Management (10%)
A safety buffer to ensure stability:
Used for unforeseen market downturns or scaling opportunities.
Maintained as liquid assets or stablecoins for quick deployment.
Profit Distribution Process
How Profits Are Shared
Net Profits:
After covering ongoing operational costs (e.g., bot maintenance, platform fees), the remaining profits are distributed.
Frequency:
Profits are distributed quarterly after trading begins, calculated based on the number of $MIF tokens each investor holds.
Calculation Example:
Total Net Profit: $500,000 (after expenses).
Total Tokens Issued: 615,000 (based on soft cap).
Profit Per Token:
Investor Distribution:
If you hold 1,200 tokens (Tier 2):
1,200 x 0.81 = 972 in profit.
Investment Tiers with Bonus Tokens
Tier 1
$1,000
0
1,000
Tier 2
$5,000
10%
5,500
Tier 3
$10,000
20%
12,000
Fundraising Breakdown
We assume the total fundraising amount is divided proportionally:
Tier 1 (40%): $200,000 (at soft cap) / $400,000 (at hard cap).
Tier 2 (35%): $175,000 (at soft cap) / $350,000 (at hard cap).
Tier 3 (25%): $125,000 (at soft cap) / $250,000 (at hard cap).
Number of Investors and $MIF Tokens Issued
For Soft Cap ($500,000)
Tier 1
$200,000
$1,000
200
200,000
0
200,000
Tier 2
$175,000
$5,000
35
175,000
17,500
192,500
Tier 3
$125,000
$10,000
12.5 (~13)
125,000
25,000
150,000
Total
$500,000
248 Investors
500,000
42,500
542,500
For Hard Cap ($1,000,000)
Tier 1
$400,000
$1,000
400
400,000
0
200,000
Tier 2
$350,000
$5,000
70
350,000
35,000
192,500
Tier 3
$250,000
$10,000
25
250,000
50,000
150,000
Total
$1,000,000
495 Investors
500,000
85,000
1,085,000
Profit Distribution Example:
Soft Cap ($500,000 and Total $MIF Issued 542,500)
Scenario 1: $500,000 Profit (2x)
Tier 1
$1,000
1000
$0,92
$920
Tier 2
$5,000
5500
$0,92
$5,060
Tier 3
$10,000
12000
$0,92
$11,040
Scenario 2: $3,000,000 Profit (7x)
Tier 1
$1,000
1000
$5,53
$5,530
Tier 2
$5,000
5500
$5,53
$30,415
Tier 3
$10,000
12000
$5,53
$66,360
Scenario 3: $25,000,000 Profit (51x)
Tier 1
$1,000
1000
$46,07
$46,070
Tier 2
$5,000
5500
$46,07
$253,385
Tier 3
$10,000
12000
$46,07
$552,840
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