The Avalanche Foundation has introduced an eligibility framework for meme coins, which outlines criteria for potential support by the platform.
Meme coins, NFTs, and similar tokens created by the community for cultural expression and interaction are categorized as “community coins” by the Avalanche Foundation. To qualify for support from the foundation, creators of these often highly volatile crypto assets must adhere to specific criteria outlined in the eligibility framework.
The Avalanche Foundation has initiated the purchase of certain meme coins through its $100 million “Culture Catalyst” initiative, aimed at cultural projects. The eligibility criteria are designed to identify community coin projects that demonstrate stability, growth potential, and a commitment to fair practices within the industry.
To ensure a fair launch, community coins must:
- Renounce ownership, burn, or lock initial liquidity.
- Implement measures against snipe bots, such as providing a head start or whitelist opportunities for genuine community members.
- Have verified contracts, undergo audits, and engage in community due diligence.
- Maintain a broad holder count and low whale concentration.
- Employ liquidity provisioning and management measures.
- Additionally, specific requirements include a minimum lifespan, market cap, daily trading volume, and native integration into the Avalanche ecosystem. These criteria serve as a framework for developers to align with the foundation’s values and contribute to a secure and robust ecosystem.
As of January 2024, the eligibility criteria for community coins include:
- Holder Count: A minimum of 2,000 unique holders.
- Concentration: The top 100 token holders (excluding centralized exchanges) collectively own less than 60% of the total supply.
- Liquidity: Maintaining a total liquidity value of at least $200,000 or equivalent.
- Liquidity Providers: Enlisting 50 or more liquidity providers unless a significant portion of liquidity has been renounced or burned.
- Lifespan: A minimum existence period of one month.
- Market Cap: A fully diluted market capitalization of $1 million or more.
- Daily Trading Volume: An average daily trading volume of at least $100,000 on Avalanche ecosystem decentralized exchanges for a consecutive two-week period.
These criteria aim to ensure the stability, transparency, and growth of meme coins within the Avalanche ecosystem.