$BALL Token has achieved an amazing 20x increase in just two days on pump.fun through its unique “auto buyback + Liquidity market making” mechanism. The team even publicly promised to use 100% of the Money Laundering for buybacks, creating a rare “value-positive cycle” model in the Meme coin sector. (Previous context: What is the meme coin issuance platform Pump.fun? A complete explanation of the super simple coin issuance process, fairness & risks) (Background Supplement: DeFi Introduction | The Rise of Decentralized Finance, What is “Automated Market Maker AMM”?)

Table of Contents

• Snowball's core mechanism: automatic repurchase + liquidity market making
• Difference from traditional repurchase model
• Risks and Challenges: The snowball may also “avalanche”

Recently, a highly talked-about project Snowball ($BALL) appeared on pump.fun. In just two days, $BALL surged nearly 20 times from its issuance price, with a market capitalization once approaching 25 million dollars. What does this mean? Against the backdrop of an overall weak meme coin market, this performance can be described as a “long-awaited golden dog.”

However, compared to the price increase itself, what is more worthy of attention is the mechanism design behind Snowball—a token economic model that combines “automatic repurchase” and “liquidity market-making.” Can this model truly achieve the “snowball effect,” allowing value to continue to roll and accumulate?

$BALL price trend chart | Image source: Shenchao TechFlow

The core mechanism of Snowball: automatic repurchase + liquidity market making

The tokenomics of Snowball can be summarized in one sentence: 100% of the transaction fees are used to repurchase tokens and deposited into the liquidity pool for market making.

Specifically, this mechanism is divided into three levels:

• Money Laundering: A fee of about 1% is charged for each transaction.
• Auto Buyback: All collected fees are used to buy back $BALL from the market. * Liquidity Market Making: The repurchased tokens are not destroyed but are deposited into the liquidity pool, continuously providing depth to the market.

Snowball Automatic Market Making Mechanism Diagram | Image Source: Shenchao TechFlow

The team explained their choice to “market make” instead of “burn”:

“If the tokens bought back are directly destroyed, it only reduces the supply once. However, if they are deposited into the liquidity pool for market making, these tokens will continuously generate transaction fees, creating a positive cycle — the more active the trading, the more buybacks; the more buybacks, the deeper the liquidity; the deeper the liquidity, the better the trading experience, attracting more trades.”

is different from traditional repurchase models.

The traditional Token buyback model typically follows the “buyback → burn” route, creating scarcity by reducing circulation. The advantage of this approach is that it is intuitive and easy to understand, but the downside is also quite obvious: burning is a one-time action and cannot continuously generate value.

Snowball Compared to Traditional Models | Image Source: Deep Tide TechFlow

The innovation of Snowball lies in combining buybacks with liquidity market making. This approach has several potential advantages:

First is the compound interest effect. The repurchased Tokens become liquidity providers (LP), continuously earning Money Laundering. These newly generated fees will be used for repurchase again, forming a compound interest effect similar to a “snowball”.

Secondly, there is price support. As the liquidity pool deepens, the impact of large transactions on prices will decrease, which helps to reduce price volatility and provide holders with a more stable holding experience.

Lastly, sustainability. Unlike one-time destruction, the market-making model allows the repurchased tokens to continuously “work”, constantly contributing value to the ecosystem.

Team Background Information | Image Source: Deep Tide TechFlow

Risks and Challenges: A snowball may also “avalanche”.

Of course, any innovative mechanism comes with risks. The core assumption of the Snowball model is that “trading volume remains active”; once market enthusiasm fades and trading volume shrinks, the entire positive cycle will stagnate and may even reverse.

$BALL Contract Address and Market Data | Image Source: Deep Tide TechFlow

Moreover, the meme coin market itself is extremely dependent on narratives and emotions. Even if the mechanism design is exquisite, if it cannot continuously attract new users and maintain community enthusiasm, it may ultimately become a “flash in the pan.” However, for now, Snowball at least proves one thing: that innovative Token mechanism design can still carve out a path on the platform known as pump.fun, which is considered to be “overly competitive to the point of death.”

This may also provide other project teams with a new idea: instead of burning money on marketing and getting caught up in competition, it is better to focus on mechanism design. After all, in this era of information explosion, true innovations that can catch people's attention are the best marketing.