> For the complete documentation index, see [llms.txt](https://docs.shuffle.family/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.shuffle.family/how-the-basket-works-technical-section/choosing-coins.md).

# Selection and allocation

The Shuffle Index targets **19 memecoins at 95%** of basket value and **SHUFFLE at 5%**.

## Which coins qualify

Candidates come from CoinGecko's **Robinhood Chain Meme** category, deduplicated by CoinGecko ID and contract address. The operator checks them in market-cap order and stops once it has 19 that pass. SHUFFLE, WETH and USDG don't take a meme slot. There is no buffer that lets existing members stay if they drop out of the top 19.

A coin must have:

* A positive market cap, updated within the last hour.
* Enough real ETH or USDG liquidity, read on-chain from a verified canonical pool. Liquidity figures reported by data providers are not used.
* Public verified source code matching the deployed contract (including the implementation behind recognized proxies).
* No permanent delisting by the index and no operator purchase exclusion.

Dexscreener supplies pool data; canonical on-chain quoters supply prices. Equal market caps are ordered by contract address.

If a verification provider is down, selection stops instead of skipping to a lower-ranked coin. If fewer than 19 coins pass, no new basket is selected. Passing these checks, and a successful trade simulation, do not guarantee a token is safe or will stay sellable.

## Gradual allocation to new tokens

As a precaution, a new entrant first receives at most **$50**. The rest of its allocation stays in WETH for at least one hour after that purchase confirms. Before buying more, the operator verifies token backing, accounting for deposits, withdrawals and management fees, and re-checks eligibility.

If a new position has zero balance at two consecutive blocks after accounting for legitimate fund activity, the operator permanently delists it and selects a replacement, which gets its own waiting period. Partial shortfalls, discrepancies in established holdings or failed verification pause trading for a manual review. Coins re-entering the basket go through the same waiting period; coins already held do not.

This limits exposure to a bad token. It does not guarantee token safety, sellability or continued liquidity, and it does not check liquidity locks.

## How much each coin gets

Higher-ranked coins get more. Each coin receives a score of 1 divided by the square root of its rank, then shares in the 95% allocation in proportion to that score. Before rounding, rank 4 gets half the weight of rank 1, and rank 9 gets a third.

For market-cap rank $$r \in {1,\ldots,19}$$, the exact target is:

$$
w\_r = \frac{95%}{S\sqrt{r}}, \qquad S = \sum\_{k=1}^{19}\frac{1}{\sqrt{k}} \approx 7.3716
$$

$$
\sum\_{r=1}^{19}w\_r = 95%, \qquad w\_{\mathrm{SHUFFLE}} = 5%
$$

**Example:** rank 1 receives 95% ÷ 7.3716 ≈ **12.89%**. The square root keeps the decline in weights gradual: ranks 1, 2 and 3 target 12.89%, 9.11% and 7.44%; rank 10 targets 4.07%; rank 19 targets 2.96%. See the [full table](/how-the-basket-works-technical-section/current-settings.md#ranked-meme-target-weights).

**Market cap sets rank, not weight.** A coin twice as big as another does not get twice the allocation. A coin's target only changes when its rank changes.

Weights are stored in whole basis points (0.01 percentage points). Largest-remainder rounding makes them total exactly 9,500 basis points, or 95%; higher rank breaks ties between equal remainders.

## Targets versus holdings

Prices move between rebalances, so actual holdings drift from targets. Execution costs, rounding and incomplete trades also affect the mix.

WETH is always tracked alongside the basket. Its target is 0%, but fee receipts and unspent trade amounts sit there until a rebalance can invest them. Before SHUFFLE is configured, WETH holds SHUFFLE's 5% target instead.


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