# Background

Meme coins need help retaining value due to their reliance on social momentum and lack of financial incentives. This volatility necessitates strategies for long-term holding and stability. Meme coins often face a fundamental challenge in maintaining value, mainly stemming from a lack of inherent utility or financial incentives to hold them. Unlike more established cryptocurrencies, which may offer staking, governance, or other value-generating activities, meme coins typically operate on the principle of social momentum. While this can result in rapid appreciation, it sets the stage for dramatic downturns, as investors are prone to "dump" their holdings without long-term value drivers. This lack of structural incentives creates a volatile environment where the asset's value is highly susceptible to market sentiment, making it challenging for meme coins to sustain value over time. Consequently, crafting strategies to incentivise long-term holding and discourage dumping becomes imperative for these assets to achieve lasting stability and growth. ​
