Plunge Protection

What is Plunge Protection?

Flaunch introduces an automated mechanism called “Progressive Plunge Protection” (PPP) that uses the trading fees generated by the coin to protect its own price from dropping.

For every 0.5 ETH of trading fees collected by the memecoin a new PPP is deployed. This places a 0.5 ETH limit order directly below spot, reducing the impact of any selling. If the price continues moving upwards, the PPP follows with more and more ETH being added to its size.

Turning off Plunge Protection

Aside from taking a share of the revenue, creators also have basic “meme management” controls that allow the coin to grow in and wonderful ways.

The creator, at their discretion, can turn off Plunge Protection, which will then begin accumulating all ETH fees for use in other ways. The creator has limited control over these funds, initially only having the ability to spend them on market buys of their memecoin. In the future these actions will be expanded to include things like airdrops, charitable donations or deposits in a token-holder governed treasury.