The Avalanche Foundation has introduced a set of eligibility criteria tailored for meme coins, signaling its potential support for these assets.
In an announcement on Tuesday, the Avalanche blockchain’s governing body unveiled an “eligibility framework” aimed at guiding its involvement with meme coins. Under this framework, creators of these frequently volatile crypto assets must adhere to specific criteria outlined by the Avalanche Foundation if they seek its backing. Utilizing funds from its $100 million “Culture Catalyst” initiative dedicated to cultural projects, the foundation has already initiated the purchase of select meme coins.
Avalanche Foundation Announces Guidelines for Meme Coins’ Eligibility’
Outlined in an official blog post, the eligibility criteria aim to identify community coin projects demonstrating stability, growth prospects, and a commitment to fair industry practices. These criteria include renouncing ownership, burning or locking initial liquidity, implementing measures against whale dominance, and refraining from allocating reserves for the team.
To foster a fair launch, steps against snipe bots are mandated, such as providing a head start or whitelist opportunities for genuine community members. Emphasis is placed on security through verified contracts, audits, community due diligence, and the use of automated tools. Additionally, a meme coin must exhibit a broad holder count, low whale concentration, and employ liquidity provisioning and management measures to ensure liquidity and mitigate risks.
Guidelines for Community Coins in 2024
In January 2024, the Avalanche Foundation outlined specific criteria for the eligibility of community coins, which include:
- Holder Count: The community coin must have a minimum of 2,000 unique holders.
- Concentration: The top 100 token holders, excluding centralized exchanges, should collectively own less than 60% of the total supply.
- Liquidity: The project is required to maintain a total liquidity value of at least $200,000 or its equivalent.
- Liquidity Providers: The project should have 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: The project is expected to maintain an average daily trading volume of at least $100,000 on Avalanche ecosystem decentralized exchanges for a consecutive two-week period.