The Avalanche Foundation, a non-profit organization actively supporting the Avalanche community, has announced a $100 million support fund dedicated to facilitating the deployment of meme coins within the community. However, the organization has revealed strict guidelines and criteria that developers must adhere to before their meme coins would be considered eligible for support.
Avalanche Foundation Makes Big Move Into Memecoins
In a recent January 23 blog post, the Avalanche Foundation outlined its goals and vision for the Avalanche community through the use of meme coins. The organization expressed its commitment to completely embracing the community’s core principles, which are culture, creativity, and camaraderie.
The foundation revealed that it recognises these specific elements in the unique design of meme coins, which foster engagement and raise community members’ spirit. It also disclosed that it has already begun using its Culture Catalyst program, an initiative created to support innovative projects, to financially empower community meme coins.
With respect to this, the Avalanche Foundation recently announced a $100 million support fund from its Culture Catalyst program to actively deploy funds into meme coins developed for the advancement and engagement of the Avalanche community.
The Culture Catalyst program was initially launched in 2022, aiming to use the funds to empower creators and innovative projects like DeFi tokens, Non-fungible tokens (NFTs), gas tokens, and more. However, in late December 2023, the organization revealed that it would be seriously exploring meme coins and would utilize the program to launch meme coins.
The foundation’s decision to support meme coin development was met with various levels of criticism from crypto enthusiasts. But despite the negative responses, the organization remains steadfast and has taken the next step toward its goals by presenting a comprehensive eligibility framework for memecoin developers requiring support.
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Eligibility Criteria To Qualify For Meme Coins Consideration
In its blog post, the Avalanche Foundation emphasized several critical benchmarks that developers need to meet before their meme coins can be approved for support. The prerequisites include the renouncement of ownership for community token contracts, burning or locking of initial liquidity, implementation of whale protection measures and the absence of any allocation reserved for the team.
The foundation also outlined criteria to mitigate snipe bot risks during the meme coin launch phase. A community coin would qualify only if it possesses a recognized Avalanche NFT, has engaged in recent interactions with popular Avalanche dApps, shows recent activities on the blockchain’s subnets, and holds a fair amount of AVAX.
In terms of security, the Avalanche Foundation has highlighted standards involving complete verification of contracts, professional audits conducted by leading security providers, and the utilization of advanced automated tools.
Other major criteria include maintaining a high holder count of at least 2,000 unique holders, ensuring total liquidity of at least $200,000, having over 50 liquidity providers, and sustaining a lifespan of at least a month. Additionally, the project’s diluted market capitalization should be $1 million or more, with a daily trading volume of at least $100,000. It is also important that the meme coin has a well-managed supply and is exclusively native to the Avalanche ecosystem.
The Avalanche Foundation has stated that these benchmarks are still susceptible to change, and meeting them does not explicitly guarantee support but serves as a guideline for developers to align with the organization’s core values and principles.