$iMEME Token and ETF Shares

At the heart of the fly-wheel sits a single smart contract which is responsible for all functions of the ETF and all transactions with the smart contract are done in the $iMEME token.

To mint new shares, a user is required to buy $iMEME and deposit it into the smart contract. Once deposited, the smart contract sells it and buys portfolio assets according to set allocations and mints new shares of the ETF to the depositor’s wallet representing their share in the ETF.

To redeem shares, a user is required to deposit their ETF shares to the smart contract which then burns the shares, sells portfolio assets represented by the shares for $iMEME and sends these tokens to the user’s wallet who then is free to sell them on the open market for which we will always ensure ample locked liquidity with a iMEME/SOL pair.

Price of an ETF share is calculated by TotalAssetValue / SharesOutstanding where TotalAssetValue is the total value of the portfolio assets and SharesOutstanding is the total count of shares that are currently held by investors.

Therefore, minting and redeeming of shares doesn’t affect the price of a share as both TotalAssetValue and SharesOutstanding always either increase or decrease by the same amount when shares are minted or redeemed. Only a change in TotalAssetValue can change the price of a share. This can happen when prices of the portfolio assets change or new supply of memes is sent to the ETF by memecoin devs.