The FTX incident is no less than a terrorist attack for the crypto market. It makes people's concern about asset safety rise to an unprecedented height for a while. At the same time, almost all the projects involved with FTX were inevitably affected, among which Solana, which was constantly in conflict with FTX, was the hardest hit. Even though it has tried to distance itself from FTX and its founder, SBF, the market does not seem to be buying it. Its Token Sol briefly fell to single digits on the double buffed by the further deepening of the bear market process. And Solana is seen by many as a flash in the pan upstart.

Paradoxically, the price of Sol has recently rebounded to double digits in this extremely unfavorable situation. According to Coingecko data, the recent highest Sol price was $14.02, and the spot Sol price remained high at $13.16 as of 0:43 a.m. on Jan. 6, 2023. This is quite bizarre when markets are so deep and the FTX fallout has yet to dissipate.

The recent reversal of Solana's decline is largely due to a Solana-based meme project that, in addition to promoting the Solana ecosystem, has also achieved an astonishing rise in its own name: BONK.

BONK is a Shiba inu-themed meme coin based on Solana ecology, with a total of 100 trillion pieces. BONK first began trading on December 29. But even before that, the team behind BONK had already spent 50% of the total supply of tokens on airdrops for the community. According to the official information, the 50% airdrops will be distributed according to the following proportion:

l 20% : Issued to Solana NFT collectors covering holders of 297,000 NFT.

l 15% : Issued to early Openbook traders.

l 10% : Issued to Solana's artists and collectors.

l 5% : Distributed to Solana developers.

As luck would have it, BONK delivered the airdrop on Christmas Day, a Christmas gift that ignited the long-dormant Solana community.

In fact, the airdrop offers a glimpse into some of BONK's team's philosophy. From the above token allocation ratio, we can see that the objects of BONK airdrop are basically users who make contributions to the construction and development of Solana's ecology, either traders or builders.

As mentioned above, the FTX incident had a huge impact on the entire Solana ecosystem, and the team behind BONK scoffed at the manipulation of this centralized organization. "We are tired of toxic 'Alameda' tokenomics," it said on its website, "Let everyone get a fair shot," and "restore liquidity to Solana DEXes." These comments resonated with the Solana community to some extent, and combined with the benefit airdrop, BONK quickly gained a popular base.

At the same time, BONK's idea of reinventing Solana's ecology has gained support from a number of other Solana ecological projects that have suffered nothing. Therefore, despite the appearance of BONK in the image of meme coin, it has been adopted steadily in the Solana ecosystem, including xNFT Backpack, decentralized exchange Orca, Jupiter, liquidity aggregator, Helio Pay, etc. Even Solana Eco's head NFT marketplace Magic Eden tweeted that it was considering integrating Bonk as a new payment currency.

BONK itself has lived up to expectations, with its price up 3,488.7% in a week and its market cap now exceeding $200 million.

Token economy

According to the official white paper, the total supply of BONK tokens is 100 trillion, of which 50% will be used for community airdrops, while the other 50% will be allocated as follows:

l 5% : For OpenBook team development.

l 5% : For marketing.

l 5% : To provide liquidity.

l 15% : attributable to BONK DAO.

l 20% : Attributed to early contributors.

Early contributors' tokens will be attributed linearly with a 3-year release cycle. The team portion is allocated to active contributors (social, artistic, and integration assistance) at a maximum of 1% per year, with attribution time based on rolling months, where each month's allocation has a 6-month cliff to a 3-year linear attribution. With the exception of the three-year release period for early contributors, Bonk has not officially announced the release period.

BONK announced in a social media post on January 1, 2023 that the project has partnered with Onsol Labs to launch the ".bonk "domain name service, which currently requires 69 million bonk tokens to create a".bonk "domain name. The BONK token used to create the ".bonk "domain will be completely destroyed. Currently, some major wallets do not support the ".bonk "domain name, but Bonk has officially started the wallet integration work. The ".bonk "domain service created demand for BONK tokens in part.

conclusion

From the author's point of view, Bonk's explosion is somewhat like Solana's ecological enclosure. Whether and how much further BONK has to go in today's highly uncertain macroeconomic environment is anyone's bet. Therefore, users need to take precautions against risks.

But there is no denying that Bonk's popularity has attracted more community users to the Solana chain. For Solana, Bonk's arrival was a boon.

However, as a token with strong meme attribute, Bonk has relatively high uncertainty. At the same time, according to the data on BONK token chain, its token holding address is relatively concentrated, and it was launched in a hurry, which seems to have some traces of manipulation. Therefore, I still suggest that you do a good job of DYOR, cautious treatment.