# What is Community coin?

### Now, let’s talk about token holders in Web3

* In the current market, they’re **just exit liquidity** for everyone dumping their bags.
* There is zero incentive to hold tokens when **90% of them are dead within two hours.**
* Their only "reward" - is a brief moment of green candles, before the possible dump.
* The reality is, that holders of new tokens are sitting at the very bottom of the food chain. Everyone wants to dump their bags on them. Is that fair? Does it give projects a real chance for long-term success? - **We don’t think so**.

<figure><img src="/files/Yl8oHmCTJo5rHMf7BYa7" alt=""><figcaption></figcaption></figure>

## **Introducing Community Coins by Something.cool**

To give holders an actual reason and motivation to hold and not end up feeling like exit liquidity themselves, we created Community Coins.

This type of coin is built around the [*Community Contribution*](/community-coins/community-contribution-how-it-works.md) mechanism, which allows the dev to set a custom trade fee when launching a token and distribute the generated fees across three key areas:

* Real-time **Holders**&#x20;
* **Liquidity Providers**
* **Burning**

This Community Contribution is **automatically generated and distributed after every transaction**.&#x20;

{% hint style="success" %}
**There’s NO control over users' funds.**
{% endhint %}

* No staking,
* No locking,
* No leaderboards.

Holders' tokens are always in their personal wallets, and the accumulated rewards can be claimed anytime on [Something.cool](https://www.something.cool/) platform.&#x20;


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