The recent liquidity mechanism adjustments on the Four.meme platform have the following impacts on old tokens (such as White Cloth and Puppet):
1. Deficiencies of the liquidity pool under the V3 mechanism
Decoupling of trading volume and LP incentives: Under the PancakeSwap V3 mechanism, the trading volume of tokens launched on the Four.meme platform failed to effectively feed back into the liquidity pool (LP), resulting in insufficient pool depth. For example, if the Puppet token were launched on the Pump platform, with a trading volume of 50 million USD, it should generate about 150,000 USD in LP incentives, but under the V3 mechanism of Four.meme, its pool is only 200,000 USD in size, leading to extremely weak liquidity.
Increased volatility: Thin pools are easily impacted by large transactions, causing significant price fluctuations, which further suppress users' willingness to participate, creating a vicious cycle.
2. The fatal impact of the V2 switch on old tokens
Background of the mechanism switch: Four.meme announced on March 30, 2025, that it would fully adopt the PancakeSwap V2 liquidity scheme starting from March 31, and the LP tokens of newly launched tokens would be burned to enhance stability, but this adjustment only applies to new tokens.
The dilemma of old tokens: Tokens in the original V3 pool cannot be migrated to V2, isolating their liquidity pools in the old mechanism. As V3 is no longer supported by the platform, LP providers lack motivation to maintain it, leading to gradual depletion of liquidity and loss of price support.
3. Community expectations and market reactions
Expectation collapse: Users originally believed that Four.meme would provide migration or compatibility solutions for the V3 pool, but the official focus was only on the advantages of the V2 for new tokens (such as burning LP tokens to reduce selling pressure), without mentioning solutions for old tokens, triggering panic selling in the market.
Liquidity lock-up risk: LP tokens in the V3 pool may be unable to exit effectively due to lack of maintenance, further exacerbating holders' selling behavior.
4. Deep contradictions in the platform's mechanism design
Imbalance between fairness and sustainability: Four.meme emphasizes fair launches (no pre-sales, no team allocation), but overly relies on joint curves and external liquidity pools (such as PancakeSwap), without designing long-term liquidity incentive mechanisms at the protocol level.
Side effects of version switching: Transitioning from V3 to V2 improves the stability of new tokens but sacrifices the survival space of old tokens, exposing the platform's negligence of ecological continuity during mechanism iteration.
Summary: Future paths for old tokens
Short-term: Depletion of liquidity may lead to price collapse, and some project teams may attempt to migrate to other platforms (such as Pump.fun), but the technical costs and difficulty of rebuilding community consensus are high.
Long-term: This event may prompt the community to reflect on the mechanism design of Meme coin launch platforms, such as introducing dynamic LP incentives and cross-version compatibility, to avoid similar collapses in the future.
It is recommended to continue monitoring subsequent announcements and community proposals from Four.meme; some projects may seek migration support through DAO governance, but current market sentiment is pessimistic, and risks need to be carefully assessed.
