Avalanche Foundation Unveils Eligibility Criteria Framework for Acquisition of Meme Coins

CryptoNews.com

2024-01-23 09:35:16

Brian Yue

Last updated:

January 23, 2024 00:30 EST | 1 min read

Source: PixabayThe Avalanche Foundation has unveiled an “eligibility framework” detailing guidelines for its plan to acquire meme coins.

In an announcement published January 23rd, the foundation behind the Avalanche blockchain outlined the essential characteristics that a meme coin must possess to be considered for acquisition.

As per the established rules, meme coins must be independent from their creators and originate on the Avalanche blockchain to be eligible. This entails a prohibition on tokens with allocated shares for their team or duplicates on other blockchains, and a requirement for the creator team to renounce ownership of the mint contract.

The Foundation also expressed a disapproval of tokens amassed by crypto whales, those lacking scrutiny from security firms, or those launched without whitelists.

Additional rules include having a minimum of 2,000 holders, with the top 100 holding no more than 60% of the total supply, over $200,000 in liquidity provided by at least 50 contributors, a market cap of at least $1 million, and a daily average trading volume of at least $100,000 over a two-week period.

The meme coin also needs to been in existence for at least a month “in order to give the community time to get to know and understand the coin,” the framework said.

Avalanche emphasized the flexibility of the rules, stating that merely meeting the criteria does not guarantee the acquisition of meme coins.

“The purpose of disclosing the eligibility criteria here is to enunciate the Foundation’s values and provide direction to the community,” the Foundation said. “And it goes without saying that the Foundation reserves the right to determine which coins to include in the Culture Catalyst program in its sole discretion and to alter these eligibility criteria as it sees fit.”

Purchases Have Already Begun

According to the announcement, the Avalanche Foundation has already initiated the purchase of meme coins using money from its $100 million “Culture Catalyst” fund dedicated to supporting cultural initiatives.

“The Foundation embraces the full spectrum of creativity, culture, and camaraderie in the blockchain space, and broadly views meme coins, NFTs, and similar tokens created by the community for culture and engagement as ‘community coins,’” the Avalanche Foundation said

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