The Avalanche Foundation has generally classified meme currencies, NFTs, and other tokens created by the community for cultural expression and engagement as “community coins.” The Avalanche Foundation has released eligibility requirements for meme coins, which the platform will consider endorsing. On Tuesday, the organization behind the Avalanche blockchain released a “eligibility framework,” which outlines their unique approach to obtain meme currency. If the Avalanche Foundation decides to acquire them, the developers of these typically volatile crypto assets must follow the guidelines established in this programme.
Avalanche Foundation’s Criteria for Meme Coins in Focus
The Avalanche Foundation has begun purchasing meme coins using funds from its $100 million “Culture Catalyst” initiative. The foundation has now introduced an eligibility criteria to identify community coin projects that show stability, growth potential, and a commitment to fair practices in the industry. To ensure a fair launch, community coins must relinquish ownership, burn or lock initial liquidity, implement whale protection, and set aside no reserves for the team. To combat snipe bots, legitimate community members can get a head start or be added to a whitelist. Verified contracts, audits, community due diligence, and the usage of automated techniques all contribute to increased security. A coin must have a large number of holders with a low whale concentration, as well as liquidity provisioning and control methods. Furthermore, a minimum lifespan, market cap, and daily trading volume are specified, emphasizing the necessity of community interaction and long-term market presence.
Community tokens must be native to the Avalanche ecosystem, demonstrating a commitment to the platform’s distinct environment. The criteria provide a framework for developers to connect with the foundation’s principles while contributing to a strong and secure ecosystem.
2024 Community Coin Criteria
As of January 2024, the specific criteria outlined by the Foundation for community coins eligibility include –
- Holder Count: A minimum of 2,000 unique holders is required for the community coin.
- Concentration: Less than 60% of the total supply should be held by the top 100 token holders, excluding centralized exchanges.
- Liquidity: The project is required to maintain a total liquidity value of at least $200,000 or its equivalent.
- Liquidity Providers: The project should enlist 50 or more liquidity providers unless a significant portion of the liquidity has been renounced or burned.
- Lifespan: The project should have been in existence for a minimum period of one month.
- Market Cap: The fully diluted market capitalization of the project must be $1 million or more.
- Daily Trading Volume: Avalanche ecosystem decentralized exchanges are expected to maintain a daily trading volume of at least $100,000 for a consecutive two-week period.