How it works.
The mechanics behind MergeIndex on Solana: the curve, the fee, the vault, graduation and dividends.
Overview
A coin launched here is an ordinary SPL token sold from a bonding curve. What makes it different is where the trading fee goes: instead of paying a wallet, it accumulates in a vault account that belongs to the coin itself.
The vault spends that fee on the stocks you chose at launch. Most launchpads tie a coin to a single stock; here one coin can carry as many as you want, which is what makes it an index rather than a bet on one name.
You never have to claim anything. Whatever those stocks pay out is airdropped to holders in proportion to what they hold.
The curve
Price is a deterministic function of supply. Buying mints new coin and moves price up the curve; selling burns coin and moves it back down. There is no order book and no liquidity provider to withdraw.
Because the curve is the only market until graduation, the reserve backing every coin is always on chain and always verifiable.
Fees
Every trade pays a creator fee. The fee is taken in the quote asset, not in the coin, so the vault never has to sell the coin it is supposed to support.
The fee rate is fixed at launch and cannot be changed afterwards. There is no authority that can raise it, redirect it, or pause collection.
- Creator fee
- 1.00% of trade value
- Protocol fee
- 0.25% of trade value
- Destination
- The coin's vault account
- Mutable
- No
The vault
Each coin gets its own vault, a program-derived account created at launch. It holds the collected fees and the Stock Tokens bought with them, in associated token accounts it owns.
Harvest is permissionless: anyone can call it, and the caller pays the transaction fee. The vault swaps its balance into your index at the weights set at launch. Weights cannot drift and cannot be rebalanced by anyone.
Graduation
When the curve's reserve crosses its target, the coin graduates. The remaining curve reserve and a matching amount of coin are deposited as liquidity on a DEX, and the LP position is burned or locked.
After graduation the curve stops quoting and all trading happens on the pool. Fees continue to accrue to the vault from the pool's fee tier.
Dividends
Stock Tokens pass through the dividends their underlying shares pay. When a payment arrives, the vault distributes it to coin holders in proportion to their balance at that moment. It is an airdrop: nothing to claim, no transaction to sign, no coin to burn.
The stocks themselves stay in the vault permanently. You are buying exposure to what the index earns, not a claim ticket you exchange for the shares.
Dividend cadence follows the underlying equities, so a vault holding names that pay quarterly distributes quarterly. Vaults holding stocks that pay nothing distribute nothing.
- Distribution
- Airdrop to holders
- Claim required
- No
- Pro-rata basis
- Balance at distribution
- Cadence
- Follows the underlying
Risks
Tokenized stocks carry issuer risk, custody risk and market risk. If the issuer of a Stock Token fails to honour its own backing, the token can trade away from the share it represents.
Bonding-curve coins are volatile and can fall to near zero. The stocks in a vault do not guarantee a floor: the index can be small relative to market cap, and its own value can fall.
Dividends are not guaranteed. They depend entirely on what the underlying equities pay, and an index built from names that pay no dividend will distribute nothing.
Nothing here is investment advice. Programs are unaudited unless an audit is published and linked from this page.