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- The Avalanche Foundation has revealed rules for the already active memecoin purchasing program.
- As more projects are considered, the Foundation has announced certain criteria that must be met to be eligible.
The Avalanche Foundation, a non-profit organization, has announced new rules for its ongoing Culture Catalyst program. The program, which was launched in 2022, saw the creation of a $100 million fund. The Foundation acknowledges the growth of memecoins and their popularity in both the Avalanche ecosystem and the wider crypto industry. In a bid to promote these tokens, the Foundation embarked on a mission to deploy capital into community coins.
The deployment of these funds is being done “within an established eligibility criteria framework,” according to the announcement. The Foundation notes that memecoins are key for the industry for “the engagement, community spirit, and culture that they engender, which goes beyond the humor and virality that they embody.”
The Foundation has listed out the criteria that should be met by the coins joining the program as follows:
- Native To Avalanche: Naturally, the community token should be native to the Avalanche ecosystem, ensuring continued growth.
- Fairly Launched: The Foundation states that the initial launch must have incorporated whale protection measures, have no allocation to the team, have initial liquidity burned or adequately locked, and have ownership of the community token contract renounced.
- Snipe Bot Resistant: Developers are encouraged to implement precautionary measures by providing either a head start or whitelist opportunities to genuine community members.
- Secure: Security is key, and hence developers must ensure they deploy security measures to ensure the network and community are protected from hackers and fraudsters.
- High Holder Count: The Foundation calls for decentralization, with coins heavily distributed to a large number of holders. Similarly, whales should not have a substantial amount of coin held, which could easily lead to manipulation.
- Broad Liquidity Provisioning: The coin should have high liquidity so that there is liquidity around the coin so token holders can enter and exit coins easily.
- Minimum Lifespan and Market Cap: Developers should ensure there is a strong market presence and should have been in existence for a minimum period.
- Daily Trading Volume: The coin should also enjoy high trading volume. This should also be diverse, and the number of account holders is high.
These guidelines will be key to ensuring that the projects enrolled in the program are safe, community-based, and drive the growth of the Avalanche ecosystem. The Foundation notes;
We are excited about this initiative, as it celebrates the unique culture within the crypto space and fosters a more inclusive and diverse ecosystem. We look forward to building and strengthening the Avalanche community.
At the time of this writing, Avalanche (AVAX) is up by nearly 7%, with a market cap now reaching $11.6 billion. The token has this year breached the top ten coins by market cap.
