Avalanche Foundation Reveals Eligibility Criteria for Community Coins
The Avalanche Foundation has outlined its criteria for selecting meme coins to include in its portfolio as part of the $100 million Culture Catalyst Program. These criteria are designed to identify tokens that demonstrate stability, growth potential, and a commitment to fair practices. One requirement is a fair launch that does not reserve any tokens for founders, as well as a low concentration of supply among crypto whales. The foundation aims to communicate its values and provide guidance to the community through the disclosure of these eligibility criteria.
What Are Meme Coins?
Meme coins are cryptocurrencies that are launched based on internet memes or recent events. Examples include Dogecoin (DOGE), Shiba Inu (SHIB), and BONK. Typically, meme coins lack explicit utility and are considered highly speculative by experts. While Avalanche’s investment plans for meme coins have faced criticism, the foundation believes they contribute to community value, culture, and engagement. These coins fall under the category of “community coins,” which is a broader investment focus.
Eligibility Criteria for Community Coins
To be considered for investment by Avalanche, community coins must meet certain requirements. They need to have at least 2,000 unique holders and a fully diluted market cap of at least $1 million. The top 100 owners cannot collectively hold more than 60% of the total supply. Additionally, these coins must have an average daily trading volume of $100,000 across two Avalanche decentralized exchanges for at least two weeks. The project should also have a minimum of $200,000 in total liquidity with at least 50 liquidity providers.
Capital Deployment and Future Investments
The Avalanche Foundation has already allocated some capital into specific community coins as part of the Culture Catalyst Program. However, they have not disclosed which tokens were purchased. The foundation has over $90 million worth of undeployed assets available for further investments in culture catalyst projects.
Hot Take: Avalanche Foundation Supports Community Coins for Culture Catalyst Program
The Avalanche Foundation recognizes the importance of fostering and supporting community initiatives in the crypto space, including the creativity and culture surrounding meme coins. By establishing eligibility criteria, the foundation aims to promote stability, growth potential, and fair practices within the community. While meme coins are often seen as highly speculative, Avalanche believes they contribute to community value and engagement. Through its $100 million Culture Catalyst Program, the foundation seeks to invest in community coins that meet specific requirements, such as unique holders, market cap, supply concentration, trading volume, and liquidity. This program demonstrates Avalanche’s commitment to supporting cultural innovation in the crypto industry.
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