Ethervista, which is being described as the “Pump.fun” of Ethereum, released its whitepaper on Aug. 31, claiming to be a “value-compounding deflationary currency” with the token VISTA.
Pump.fun is a Solana-based marketplace that allows users to easily create and distribute their own tokens, which are primarily meme coins.
Its gas usage has surged to become the top consumer guzzling 150 ETH in gas over the past day, according to Dune Analytics.
Deflationary DeFi Asset
The platform is constantly auto-buying and burning the token, increasing the floor price each time, it explained. Ethervisa also promoted a fair launch with a liquidity lock of five days following the conclusion that most rug pulls take place between two and four days of launch.
Additionally, the total supply was distributed to the liquidity pool and locked for five days. Swaps accrue a gas fee in ETH, which is distributed to the liquidity providers. It has a deflationary supply capped at a million tokens, with issuance reducing over time through coin burns.
It's time to explain how $VISTA works
VISTA is a value-compounding deflationary currency.
Wut ?
This means Ethervista is constantly autobuying and burning the token, increasing the floor price each time. This is a type of feature that EthervistaDEX renders possible
To… pic.twitter.com/69LBf3ZQqT
— Ethervista (@ethervista) September 3, 2024
The project is targeting a gap in the Ethereum DeFi market that has been filled by rival platforms Base and Solana, which have attracted meme coin degens and are boosting network revenues.
On Sept. 2, Ethervista noted that a lot of pairs were being created. It strongly urged creators to burn their liquidity “as transferring lp-tokens to the burn address does not change their share of the lp rewards.”
VISTA surged to an all-time high of almost $30 on Sept. 2 before falling back to $18.23 with a market cap of almost $20 million at the time of writing, according to DEXscreener.
Ethereum Fee Slump
The launch comes amid growing concerns about Ethereum supply becoming inflationary again as network fees plummet. Since the Dencun upgrade in March, which vastly reduced layer-2 fees, Ethereum layer-1 has been suffering.
Ethereum supply is currently inflating by 0.73% per year and has grown by 0.2% since April to reach 120.32 million, according to Ultrasound.Money.
Additionally, Ethereum layer-1 revenue is down 99% in the past six months, according to Token Terminal. This has lowered the demand for the asset which is used to pay network fees in gas.
Ethereum community member Ryan Berckmans refuted some of the FUD, stating that “Ethereum doesn’t ‘aim’ to collect fees. Fees are not a goal, they’re a byproduct.”
Ethereum doesn't "aim" to collect fees. Fees are not a goal, they're a byproduct.
We coincidentally collect fees because we make a platform that's too useful to remain uncongested, and fees are the best way we know to resolve that congestion.
ETH is money, Ethereum is for users
— Ryan Berckmans ryanb.eth (@ryanberckmans) September 2, 2024