A Deep Dive Into Bonk— The Solana-Based Memecoin
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A Deep Dive Into Bonk— The Solana-Based Memecoin

2 months ago

CoinMarketCap Alexandria takes a deep dive into Bonk, which claims to be the first Solana dog memecoin "for the people by the people."

A Deep Dive Into Bonk— The Solana-Based Memecoin

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What Is Bonk (BONK)?

Bonk (BONK) is a meme coin that calls itself “the first Solana dog coin for the people by the people.”
Bonk — or the “people’s dog coin” of Solana — was distributed via an airdrop. According to Bonk’s one-pager, its contributors were “tired of toxic “Alameda” tokenomics. This presumably refers to the collapse of FTX and its sister company Alameda Research, both headed by Sam Bankman-Fried (SBF). Bonk aims to be a “fun meme coin where everyone gets a fair shot.”
Bonk follows in the footsteps of other famous dog-themed meme coins like Shiba Inu and Dogecoin, albeit one that launched during a bear market.

Over the past week, BONK experienced an impressive rally of over 2,000%, although prices have fallen by over 66% since highs reached on Jan. 5.

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This has resulted in the team burning 5 trillion $BONK tokens, worth almost $1 million at the time, to reduce tokens in circulation and backstop the price decline. The current supply is 94.1 trillion $BONK, and the token has over 117K holders, according to Solscan.
Like many other meme coins, the founders of Bonk remain anonymous. Dog coins and other meme coins have developed a reputation for being rug pulls. Therefore, investors in Bonk are advised to proceed with the utmost caution. However, it is worth noting that some meme coins, like the aforementioned SHIB and DOGE, have been trading regularly for years. The same is true for FLOKI, another dog-themed coin. Being founded by anonymous developers does not automatically mean a coin will be a rug pull or a pump-and-dump.

Bonk Airdrop and Features

Bonk follows the tried-and-tested formula of launching a hyped meme coin on the back of a strong community pledge.

Its “Bonkpaper” explains that Bonk strives to be “the true community coin of Solana.” Many other meme coins have launched with similar-sounding promises. Bonk aims to distinguish itself by not being “in the hands of VCs,” an accusation the Solana ecosystem has often faced.
Bonk aims to achieve that by airdropping a large portion of its tokens to “NFT degens and DeFi traders” in the Solana ecosystem. The “Bonk vision” will be propelled by a team of early contributors, “dedicated to the long-term success” of Bonk. All of this is to make 2023 a better year for the Solana community than 2022, according to Bonk. The Bonkpaper outlines how 2022 was a “brutal year” for the Solana community, which fell victim to “predatory actors.”

In 2023, Bonk wants to lead the charge in taking the network control back to the hands of users. For that reason, it has “many planned integrations,” a seemingly standard promise of many meme coins. It aims to “provide superior distribution mechanics” compared to other meme coins thanks to its airdrop distribution tactic.

Bonk (BONK) Coins Tokenomics

BONK is distributed in the following manner:

  • 20% goes to 40 active Solana NFT projects, representing 296,000 NFTs.
  • 15 goes to openbook traders. Bonk will not announce thresholds to “prevent gaming of the system” but promises even small balances can qualify.
  • 10% goes to artists and collectors of 1/1 art that provide a snapshot of activity from collector.sh.
  • 5% goes to Solana developers.
  • 20% goes to early contributors helping with the launch. 22 individuals are included in this, with a vesting period of 36 months of linear vesting.
  • 5% goes to future contribution and development incentives.
  • 15% goes to a Bonk DAO.
  • 5% goes to an initial liquidity distribution on different decentralized exchanges.
  • 5% goes to marketing purposes.

How Is the Bonk Network Secured?

Bonk is an SPL token on Solana. The project website does not provide any information regarding a security audit. Solana is one of the most commonly used blockchains, secured by a proof-of-stake-type consensus mechanism that allows it to achieve some of the highest transaction speeds among all chains.
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