The Avalanche Foundation, an influential supporter of the Avalanche blockchain, has introduced distinctive eligibility framework for acquiring meme coins. This initiative is part of the Foundation’s broader strategy to promote cultural engagement and community building in the cryptocurrency space. The foundation aims to purchase meme coins using funds from its $100 million Culture Catalyst program, which supports various cultural initiatives.
Known for their humorous and often canine nature, meme coins have gained popularity despite their volatile and sometimes questionable value. Some meme coins have emerged as legitimate investment opportunities, while others have been marred by scams and fraudulent activities. The foundation’s approach seeks to promote projects that not only entertain, but also foster a sense of community belonging and engagement. Additionally, this strategy fosters a diverse and inclusive ecosystem in the blockchain space.
The eligibility framework outlined by the Avalanche Foundation is designed to ensure the selection of meme coins that demonstrate stability, security and significant community support. To be considered for acquisition, meme coins must meet specific criteria:
Independence from creators: Meme coins must be independent from their creators and part of the Avalanche blockchain. Tokens reserved for creator teams or replicated on other blockchains are excluded.
Ownership and Distribution: Creators must relinquish ownership of the mint contract. The framework requires a minimum of 2,000 unique token holders, with the top 100 holders owning less than 60% of the total supply.
Liquidity and Market Capitalization: A liquidity pool of over $200,000 is required, provided by at least 50 liquidity providers. The meme coin must have a minimum market capitalization of $1 million.
Trading Volume and Lifetime: An average daily trading volume of at least $100,000 on Avalanche DEX for at least two weeks is required. Also, the meme coin must have been around for at least a month.
This structured approach aims to provide transparency and legitimacy to the meme coin market. The foundation views meme coins and similar tokens as “community coins” reflecting the creativity, culture and camaraderie of the blockchain community. The criteria, while subject to change at the Foundation’s discretion, are a crucial step in identifying meme coins that demonstrate true community engagement, value and long-term viability.
The Avalanche Foundation’s move into the meme coin sector signifies an interesting evolution in the cryptocurrency landscape, recognizing the unique cultural and entertainment value these tokens can offer. This initiative is a testament to the growing importance of meme coins in the broader crypto ecosystem and the potential they hold in shaping the future of digital currencies and blockchain technology.
Image source: Shutterstock