Almost all meme coins have a re-distribution, burn, and automatic liquidity feature. Below we break down why all of them have faulty logic that hurts their long-term holders.
We used ASS finance as an example. However, this issue exists in more than 99% of meme coins, as they are all forks of illogical codes.
Meme coins like ASS finance, a popular safe moon fork, advertise with a 5% burn and 5% re-distribution feature.
The #1 holder is currently the Pancake Swap pool, holding more than 26% of the total supply. The #2 holder is an exchange wallet, holding another 11%.
These two contracts receive more than 36% of the rewards, which should go towards genuine holders. Instead, they flow into the Pancake Swap pool and get stuck forever.
The exchange wallets receive all re-distribution and most likely don't pass it on to their holders. Instead, they most likely market dump on their users.
Theoretically, excluding addresses and contracts from rewards could solve this problem. All those meme projects even have a function to do that:
Excerpt from the smart contract code of Ass Finance / Safemoon (Both use the same code)
However, when replicating this safe moon fork, we noticed that excluding those addresses, the rewards were still not attributed to genuine holders. Instead, they just went missing!
You can easily verify this but checking the total circulating supply. You'll notice that mostly 5-10% of the total supply is just gone. It's not stuck in any address or contract; it's gone forever, leaving holders with nothing but their dicks in their hands.
The reason for this is some faulty logic in the distribution part of rewards
When excluding an address from rewards, mapping and array need to be updated. However, all meme tokens do update mapping, but not array.
Therefore, excluded addresses still get re-distributions, but since the code doesn't update the balances, tokens just get lost in nirvana. You can check this on the test net where we forked ASS Finance.
The worst part is, this contract got forked over 5000 times. Many of those projects have over 80% of the supply burned or stuck in contracts. Effectively this means there is only a 1% re-distribution and 4% burn on top of the planned burn.
Bobo Cash fixed this logic. $BOBO holders will always receive 100% of the reward re-distribution.
You can verify this but checking the circulating supply of $BOBO. It will always reflect 100%.
This shit may go to $0, but at least you get what you've been promised!