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Cause Token

Cause Tokens

What is a Cause Token?

A Cause Token is an optional bonding curve token that market creators can launch alongside their prescription market. It allows early supporters of a market's thesis to buy into the cause, creating community alignment and an additional revenue stream for creators.

Cause Tokens are powered by Meteora (opens in a new tab) — Solana's leading liquidity protocol.

🪙 In short: A market about "Should X happen?" can now have a token that lets people put money behind the cause of making X happen.

How to Launch a Cause Token

During Market Creation

  1. Toggle "Launch a Cause Token" when creating a market
  2. Fill in token details:
    • Token Name — e.g., "Prescribe Climate Action"
    • Token Symbol — e.g., "CLIMATE" (max 6 characters)
    • Description — What this cause token represents
    • Image URL — Optional token icon
  3. Submit your market — the token launches automatically on Meteora's bonding curve

Requirements

  • Any market creator can launch a Cause Token (verified or not)
  • Token Name and Symbol are required
  • The token launches on Meteora's bonding curve infrastructure
  • No upfront cost beyond the standard 0.01 SOL market creation fee

How the Bonding Curve Works

What is a Bonding Curve?

A bonding curve is a mathematical pricing function where the token price increases as more people buy. Early buyers get tokens at a lower price, and the price rises automatically as demand increases.

Price at launch: Low
→ More buyers = Higher price
→ Curve fills = Token "graduates"
→ Full liquidity pool created

Buying on the Curve

  1. Early phase — Tokens are cheap, high risk/reward
  2. Growth phase — Price increases as more people buy in
  3. Near graduation — Price approaches the graduation threshold
  4. Post-graduation — Token trades freely on a standard AMM liquidity pool

Key Numbers

MetricValue
Graduation market cap~$69,000
Initial priceDetermined by curve parameters
Price increaseAutomatic, based on supply purchased
Post-graduationFull Meteora AMM pool

Graduation

What Happens at Graduation?

When the bonding curve fills (reaches ~$69K market cap):

  1. Curve closes — No more buying on the curve
  2. Liquidity migrates — All funds move to a standard Meteora AMM pool
  3. Free trading begins — Token trades like any other on a DEX
  4. LP fees start flowing — Every trade generates fees for the creator and platform

LP Fee Distribution

After graduation, trading fees from the liquidity pool are split:

RecipientShare
Market Creator50%
Platform50%

💡 This creates ongoing passive income for creators from their cause token — even after the market closes.

How to Buy a Cause Token

On the Market Page

  1. Navigate to any market with a Cause Token enabled
  2. Find the "🪙 Cause Token" card in the right sidebar
  3. Click "Buy Token" — this opens Meteora
  4. Connect your wallet on Meteora and purchase

Directly on Meteora

  1. Go to app.meteora.ag (opens in a new tab)
  2. Search for the token symbol
  3. Buy directly on the bonding curve or AMM pool

Use Cases

Advocacy Markets

  • "Should the city build a new park?" → Launch $PARK token
  • Supporters buy $PARK to show financial commitment to the cause

Community Alignment

  • Market creator's community buys the token
  • Token holders become promoters of the market
  • Aligned incentives between creator and community

Meme/Cultural Markets

  • Fun markets with cultural significance
  • Community tokens that capture social momentum
  • Viral potential through token price action

Risks & Disclaimer

⚠️ Important: Cause Tokens are speculative assets.

Key Risks

  • Price volatility — Token prices can drop to zero
  • No guarantee of graduation — If demand is insufficient, the token may never graduate
  • Not financial advice — Buying cause tokens is speculative and you can lose your entire investment
  • Liquidity risk — On the bonding curve, selling large amounts can significantly impact price
  • Smart contract risk — While Meteora is audited, no protocol is risk-free

What Cause Tokens Are NOT

  • ❌ Not investment contracts
  • ❌ Not securities
  • ❌ Not guaranteed to appreciate
  • ❌ Not tied to market outcomes (your SOL signal deposit is separate)
  • ❌ Not required to participate in Referandium markets

Best Practices

  • Only invest what you can afford to lose
  • Understand the bonding curve mechanics before buying
  • Do your own research on the market and creator
  • Diversify — don't put all funds into one cause token

FAQ

Is a Cause Token required to signal on a market?

No. Cause Tokens are completely optional and separate from the signal/yield system. You can signal on any market without buying its cause token.

Can I sell my cause token?

Yes. On the bonding curve, you can sell back at the current curve price. After graduation, you can sell on the AMM pool.

What happens to the cause token when the market closes?

The token continues to exist and trade independently. It is not tied to the market's resolution.

Can a non-verified creator launch a cause token?

Yes. Any market creator can enable a cause token during market creation.

What if the token never graduates?

It remains on the bonding curve. Holders can still sell back at the current curve price, though the price may be lower than their purchase price.

Align your capital with your convictions. Buy the cause. Powered by Meteora on Solana 🪙

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