Nikolas Sargeant
The Avalanche Foundation, a staunch supporter of the Avalanche blockchain, has introduced a comprehensive "eligibility framework" outlining criteria for the acquisition of meme coins native to its blockchain. This move is part of the Foundation's strategy to regulate and navigate the booming market of playful and highly volatile cryptocurrencies often associated with canine themes.
Stringent Rules for Meme Coin Eligibility
The newly released three-page rule set sheds light on the conditions meme coins must fulfill to be considered for acquisition by the Avalanche Foundation. Notably, meme coins must maintain independence from their creators and exclusively exist on the Avalanche blockchain. This excludes tokens with team allocation clones on other blockchains and mandates creators to renounce ownership of the mint contract.
Moreover, the Foundation disapproves of tokens hoarded by whales, those lacking scrutiny from security companies, or those launched without whitelists. While the rules are flexible, meeting them does not guarantee acquisition. However, as of January 2024, meme coins must meet certain minimum requirements:
- At least 2,000 holders, with the top 100 owning less than 60% of the supply.
- More than $200,000 in liquidity is supplied by a minimum of 50 providers.
- A market cap of at least $1 million.
- Daily average trading volume exceeding $100,000 over two weeks.
- Existence for a minimum of one month to allow the community to familiarize itself with the coin.
The Foundation's statement to CoinDesk emphasizes its commitment to embracing a broad spectrum of creativity, culture, and camaraderie in the blockchain space. Meme coins, NFTs, and similar community-created tokens are acknowledged as 'community coins' contributing to cultural initiatives funded by the Foundation's $100 million "Culture Catalyst" fund. While the Foundation has already initiated meme coin purchases, specific details about the acquired tokens, allocated capital, and active management of positions remain undisclosed.
For further clarity or inquiries, the Foundation has not responded to questions from the media at the time of this release.
