According to CryptoPotato, the Avalanche Foundation has introduced an eligibility framework for meme coins, which the platform may consider supporting. The organization behind the Avalanche blockchain aims to acquire meme coins that adhere to specific criteria outlined in this initiative. The foundation has begun purchasing certain meme coins using funds from its $100 million Culture Catalyst initiative dedicated to cultural projects.
The eligibility criteria are designed to identify community coin projects that demonstrate stability, growth potential, and a commitment to fair practices in the industry. To ensure a fair launch, community coins must renounce ownership, burn or lock initial liquidity, implement whale protection, and allocate no reserves for the team. Security measures include verified contracts, audits, community due diligence, and the use of automated tools. A coin must have a broad holder count and low whale concentration, and it must employ liquidity provisioning and management measures. Additionally, a minimum lifespan, market cap, and daily trading volume are stipulated, emphasizing the importance of community involvement and sustained market presence. Community tokens must be native to the Avalanche ecosystem, reinforcing the commitment to the platform's unique environment.
As of January 2024, the specific criteria outlined by the Foundation for community coins eligibility include a minimum of 2,000 unique holders, the top 100 token holders owning less than 60% of the total supply, maintaining a total liquidity value of at least $200,000, enlisting 50 or more liquidity providers, a minimum project lifespan of one month, a fully diluted market capitalization of $1 million or more, and an average daily trading volume of at least $100,000 on Avalanche ecosystem decentralized exchanges for a consecutive two-week period.
