In a recent clip shared by crypto journalist Laura Shin on X, Solana Foundation President Lily Liu shed light on a hot topic in the blockchain world: the ease of gaming Total Value Locked (TVL) versus the challenge of faking revenue. For those new to the terms, TVL refers to the total amount of assets locked in a protocol or network, often used as a gauge of its popularity and health. But as Liu points out, it's not always a reliable indicator.

The clip, from episode 910 of the Unchained podcast, features Liu explaining, "TVL is the stock or the inventory of that asset. Minting a money market fund and putting that on chain is something that people do pretty freely." Essentially, projects can inflate their TVL by creating and locking assets without much cost or effort—think of it as pumping up numbers with minimal real-world value addition.

On the flip side, Liu emphasizes that generating actual revenue, often from user fees, is much tougher to manipulate. "Whereas to actually be regularly generating fees, that is much less free and easy for people to actually game fees," she notes. Revenue comes from genuine user activity, like trading or using DeFi services, making it a stronger signal of a project's sustainability.

This discussion is particularly relevant for the meme token ecosystem, where Solana has become a hotspot thanks to platforms like Pump.fun. Many meme tokens launch with hype-driven incentives to boost TVL, such as airdrops or liquidity mining rewards, but struggle to maintain real engagement that translates to ongoing revenue. As Liu suggests, focusing on revenue over TVL could help investors spot the gems amid the noise in the meme coin frenzy.

Laura Shin's post on X sparked quick reactions, with users agreeing that "revenue tells the real story" and noting how TVL inflation leads to "mass extraction." It's a reminder for blockchain practitioners: look beyond the flashy TVL numbers and dig into the revenue streams for a true picture of a project's vitality.

If you're diving into meme tokens on Solana, keep an eye on protocols that prioritize sustainable revenue models. For the full context, check out the Unchained podcast episode where Liu dives deeper into DeFi metrics and the future of platforms like Pump.fun.

This insight aligns with broader trends in crypto, where metrics evolution is key to maturing the space. Whether you're a dev building the next big meme launchpad or an investor hunting for 100x potential, understanding the difference between gamed TVL and hard-earned revenue could be your edge.