On January 23rd, the non-profit organization responsible for the Avalanche blockchain network made an announcement regarding the establishment of a $100 million fund intended to provide support for meme coins and other community-based digital currencies.
According to their official statement, the Avalanche Foundation considers meme coins to possess significant community value, primarily due to the unique culture and active participation they foster. To further enhance this aspect, the Foundation will allocate capital through its Culture Catalyst program to specific meme coins that meet predetermined eligibility criteria.
The Foundation expressed its belief that meme coins offer substantial community value, extending beyond their inherent humor and viral nature to encompass engagement, a strong sense of community, and the cultural influence they generate. They emphasized their commitment to embracing the entire spectrum of creativity, culture, and camaraderie within the blockchain space.
Strict Eligibility Criteria for Meme Coin Fund
The Avalanche Foundation’s new fund is aimed at nurturing the culture of meme coins by offering financial support to community-based digital currencies that actively encourage engagement.
In order to qualify for the meme coin fund, members must satisfy the following 11 criteria:
1. Fair Launch: No team allocations, relinquished contract ownership, locked liquidity, and imposed purchase limits to prevent manipulation by large holders.
2. Resistance to Snipe Bots: Providing whitelist opportunities exclusively to active members of the Avalanche community.
3. Security Measures: Employing verified contracts, conducting audits, subjecting creators to community scrutiny, and utilizing tools such as DexScreener.
4. High Holder Count: Having a minimum of 2,000 unique coin holders.
5. Low Concentration: Ensuring that the top 100 holders possess less than 60% of the total coin supply.
6. Broad Liquidity Provisioning: Establishing substantial, locked liquidity pools at the coin’s launch.
7. High Liquidity: Maintaining a minimum liquidity pool of at least $200,000.
8. Liquidity Providers: Involving 50 or more liquidity providers, unless the liquidity has been renounced or burned.
9. Minimum Lifespan: Existing for a minimum of one month.
10. Minimum Market Cap: Achieving a fully diluted market capitalization of at least $1 million.
11. Daily Trading Volume: Maintaining an average daily trading volume of at least $100,000 for a period of two weeks.
The announcement emphasized that these eligibility criteria are designed to identify community coin projects that exhibit stability, growth potential, and a commitment to ethical practices within the cryptocurrency landscape.
Ongoing Support Reflects Avalanche’s Commitment
The Avalanche Foundation plans to continually provide funding, allowing new projects to potentially participate when they meet the specified criteria. It’s important to note that meeting these criteria does not guarantee funding but serves as an indication of Avalanche’s core values.
By extending support to meme coin projects that align with its criteria, the Avalanche Foundation aims to expedite the development of a vibrant culture and community within its blockchain ecosystem. Meme coins and NFTs are regarded as catalysts for introducing creativity and fostering camaraderie within the blockchain realm.
Furthermore, the Foundation’s meme coin fund is anticipated to enhance Avalanche’s competitiveness in the decentralized finance (DeFi) sector by offering incentives for projects to build on its platform.
With a commitment of $100 million, the organization aspires to fortify the Avalanche community by strategically nurturing viral meme coins and community tokens that exhibit long-term viability.
