Avalanche Foundation, the supporter of the Avalanche blockchain, has taken steps in its memecoin acquisition initiative by introducing an eligibility framework that outlines key criteria for the consideration of these highly volatile coins. This move is part of the foundation’s strategy to foster culture, creativity, and engagement within its ecosystem.
The recently released eligibility criteria emphasize the importance of certain principles to ensure the authenticity and validity of memecoins that the foundation plans to acquire. To begin with, only those native to the Avalanche blockchain will be considered. This means they must be independent of their creators and not have duplicates on other blockchains.
The Avalanche Foundation recognizes the importance of fostering and supporting community initiatives on Avalanche, including the creativity and culture of community coins.
The Foundation has reserved a portion of the Culture Catalyst program to include community coins, doing so…
— Avalanche 🔺 (@avax) January 23, 2024
Furthermore, memecoins must meet certain requirements to ensure a fair launch and resist harmful practices, such as excessive accumulation by large holders or lack of scrutiny by security companies. The development team must renounce ownership of the mint contract, and concentration of holdings by whales is to be avoided. These measures aim to protect investors and ensure fairness in the ecosystem.
Avalanche Sets Minimum Criteria: Embracing Diversity, Creativity, Culture, and Security
The Avalanche Foundation has also established minimum criteria that coins must meet to be considered. They must have at least 2,000 holders, with the top 100 holders controlling less than 60% of the total supply. Additionally, it requires the coin to have liquidity of over $200,000 provided by at least 50 providers, a market cap exceeding $1 million, and a daily trading volume of at least $100,000 for two weeks.
In a statement, the foundation mentioned that it has already started purchasing some memecoins using funds from its “Culture Catalyst” program dedicated to cultural initiatives. While they did not disclose the names of their acquisitions or the amount of allocated funds, they stated their commitment to creative and cultural diversity in the blockchain space.
In an additional statement, the foundation also shared an eligibility criteria framework for “Community coins,” encompassing not only memecoins but also non-fungible tokens (NFTs) and similar tokens created by the community for culture and engagement. These criteria advocate for fair launch, resistance to bots, security, and active community involvement in the development of these projects.
Avalanche is taking concrete steps to regulate the acquisition of memecoins, establishing an eligibility framework that highlights its commitment to fairness, security, and cultural diversity in its network. These measures not only aim to protect investors but also foster a creative and participatory environment in the crypto space.