Heaven builds its own AMM mechanism to achieve profits, and the LIGHT token's flywheel effect is becoming evident.
Author: dpycm
Translation: Deep Tide TechFlow
Disclaimer: This article is for reference only and does not constitute any financial advice. The author has personal investments in the aforementioned tokens. Any opinions expressed herein are solely those of the author and should not be the basis for investment decisions, nor should they be considered as investment trading advice or recommendations.
May the light illuminate the path ahead.
If you have been following my X or Telegram, you may have seen my views on $LIGHT and some musings. This article is just to organize my current thoughts and paint a more complete picture for those who want to understand Heaven.
Original article link: Click here
Initially, I discussed Heaven after its market cap stabilized at around $18 million, which is understandable as a failed TGE (Token Generation Event) led to issues (Dexscreener's index at the time showed $30 million).
So, what exactly is Heaven?
Heaven
Original article link: Click here
Heaven, supported by the Solana Foundation's hackathon department Colosseum, is a launch platform and automated market maker (AMM) aimed at addressing deep-seated issues in the current industry. Its founder peacefuldecay has written an in-depth analysis article (highly recommended reading).
Give me light
Heaven can capture about 5 times the revenue per transaction compared to Pumpfun in token trades with a market cap exceeding $100,000, with no additional cost to users.
Original article link: Click here
From peacedecay's TG:
Some people are curious about how this is achieved.
In short: LP (liquidity provider) fees are an outdated AMM mechanism rooted in Ethereum's "seed sharing" concept—"If we all contribute a little to liquidity, we can share wealth with every USDC transaction!"
And your earnings per transaction might only be 0.04%, or some random DeFi old-school mechanism.
In reality, there is no reason to still use LP fees in the main pool to handle Meme or ICM, other than making LP thicker with trading volume.
I prefer to make LP thicker algorithmically as prices rise, so we know it will scale well.
What’s the result? We have fees that are 5 times higher than Pump's, feeding back into the flywheel effect, with no additional cost to users.
No other Launchpad can do this because they are essentially paying Meteora and Raydium a 0.3% fee to handle trades.
And we are Meteora and Raydium.
That’s why we remain so profitable even with low trading volumes and do not charge users extra fees.
In the case of a market cap exceeding $100,000:
On the Pumpfun platform, users pay about 0.30% in fees for each swap:
0.2% to LP (liquidity provider)
0.05% to Pump
0.05% to creators
On the Heaven platform, users pay fees ranging from 0.25% to 0.5% for each swap, depending on whether it is a community token or a creator token. 100% of these fees are fed back into the $LIGHT flywheel effect (or the flywheel effect of related tokens).
What’s the outcome?
Original article link: Click here
Top image: Trading volume
Bottom image: Revenue
Heaven's trading volume is lower than Bonk, but its revenue is 10 times that, while maintaining the same thick liquidity pool (LP) and without passing any additional costs onto users.
This is the difference: the distinction between launching a Raydium wrapper in 3 days and building an AMM (automated market maker) from scratch over 6-7 months, then launching a wrapper on top of that.
A complete tech stack, full ownership, and 100% of the revenue is returned to $LIGHT.
Original article link: Click here
Heaven also has the capability to resist MEV (Maximum Extractable Value) and sniper trading!
Flywheel effect
Original article link: Click here
Within about 3 days of launch, Heaven has burned $1.2 million worth of $LIGHT through the flywheel mechanism, accounting for approximately 3.6% of the circulating supply.
Next, let’s delve into its tokenomics model.
Tokenomics
Original article link: Click here
Total supply cap: 1 billion tokens
Genesis ICO (50%): Issued to the public during the Heaven Genesis phase.
Team (20%): Allocated to the founders and team members of Heaven.
Community (10%): Used for Heaven's incubator program and community rewards.
Investors (5%): Allocated to investors and advisors.
Liquidity (5%): Funded for Heaven's initial DEX (decentralized exchange) liquidity and future CEX (centralized exchange) liquidity.
Foundation (10%): Supports the ongoing operations of the Heaven Labs Foundation (including salaries, audits, listings, etc.). The foundation's expenditures will be disclosed quarterly.
Genesis ICO (50%): Fully released in advance, no lock-up.
Team (20%): Two-year linear release (Gradual Unlock).
Community (10%): Two-year linear release (Gradual Unlock).
Investors (5%): Two-year linear release, including:
Liquidity (5%): 2.5% initially unlocked, remaining 2.5% locked until needed for CEX (centralized exchange) listing (Gradual Unlock).
Foundation (10%): Two-year linear release (Gradual Unlock).
This means the initial circulating supply is about 55%, gradually unlocking over time. At the current revenue rate, these unlocked amounts are effectively absorbed by the flywheel effect.
Starseed
Starseed is Heaven's ecosystem program, similar to Pumpfun's Glass Full Foundation.
Original article link: Click here
Starseed will focus on supporting and enhancing outstanding projects on Heaven, including ICM, memes, and various types of tokens. With Starseed officially launching tomorrow, more updates will follow. This incentive program is expected to further drive interest in Heaven and enhance the vitality of its ecosystem projects.
Valuation Discrepancy
Original article link: Click here
Heaven's current daily revenue is about 25% of Pumpfun's, but its valuation is 35 times smaller than Pumpfun's (as of writing, Pumpfun's valuation is $3.5 billion, while Heaven's valuation is $100 million).
Original article link: Click here
This makes $LIGHT an extremely attractive trading option, as the buyback efficiency of $LIGHT is nearly 3 times that of Pump. Of course, all of this depends on whether Heaven can continue to maintain such market interest and revenue. It is well known that competition among Launchpads is fierce.
Original article link: Click here
Many people sold off after losing money in the ICO or overlooked it due to Heaven's launch issues, even gloating over it. However, there are still a large number of potential buyers closely watching its ecosystem and price trends.
Narrative
Original article link: Click here
Why is Heaven's narrative so different from other Launchpads? Is it really because of NGU (Number Go Up) technology? I think that is just part of the reason.
Original article link: Click here
Although Peace is an anonymous founder, I believe he is an excellent storyteller and marketer who can execute things effectively.
With just one article on the X platform, he was able to crowdfund $27 million from crypto Twitter (CT), which demonstrates two key points:
There is strong demand and interest in products like Heaven.
Peace's outstanding narrative ability.
I remember thinking a month ago when I finished reading the entire article, "Wow, I have to get involved."
Before the product was even launched, Peace had already successfully shaped Heaven's narrative. Now, everyone holding $LIGHT feels like they are part of the same camp.
I say this because Pump also has a 100% income flywheel, but why do people feel so differently about the narratives of Heaven and Pump?
"Because Pumpfun has been extracting value, etc."
That's right.
When early holders are well rewarded, you will be able to build a stronger user and holder base on top of quality products (like Hyperliquid, Axiom, etc.). Retention and support for the product will also be more solid.
Pump did not reward early holders and did not airdrop to early users of the platform. Although Pump has regained dominant market share, it is clear that most participants still prefer a platform that extracts less value, especially after the backlash from Bonkfun.
The best marketing is a green candlestick chart (price increase).
Don't overthink it.
Balanced Summary
Pros:
100% income flywheel mechanism
Efficient and superior fee model (controlling the entire ecosystem stack)
Valuation still low, only $70 million
Crowdfunded $27 million, supported by Colosseum (Solana)
Reflexivity (price increase -> more interest -> more activity ->)
Positive narrative and market sentiment (holders feel they are part of the same camp)
Peace has delivered on promises so far while demonstrating excellent marketing skills
Huge growth potential in the future, especially with catalysts like Starseed, listings, and more incentive programs
Only need to capture a portion of market share to reprice, no need to surpass Pumpfun (surpassing is just an extra reward)
Positioning of ICM Launchpad (attracting rather than chasing)
Cons:
Pump has a larger capital reserve.
Speculative capital in the trenches (comes easily, goes quickly), needs to maintain market interest and revenue continuously.
Limited liquidity in the current state.
Soleth is performing poorly, with no signs of improvement in the short term.
If Peace abuses power or becomes too arrogant, it could lead to a negative image.
Overall, I do believe that $LIGHT has significant growth potential, especially as a dark horse starting out. I see it as an unexpected winner, rising suddenly and catching everyone off guard. However, it needs time to prove itself and solidify its position in the Launchpad competition. We all know how quickly market changes can happen, from Pumpfun losing dominance to Bonkfun's rise and fall, to Bags' fleeting moment. Overall, I believe the market's cake is big enough to accommodate the joint development of Heaven and Pump.
I believe Peace will continue to deliver on promises and shape the narrative, positioning Heaven as an anomaly in the current toxic environment in the trenches. May Heaven bring us light and lead the trenches to a better state.
Heaven has issued a grand invitation to reclaim control of the crypto industry!
May the light descend.
I hope you enjoyed this article,
Cheers!
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