The Avalanche blockchain’s supporting organization introduced an “eligibility framework” on Tuesday, outlining guidelines for its unconventional initiative to acquire meme coins.
Not every meme coin is made equally. Their creators will need to abide by certain guidelines if the Avalanche Foundation decides to purchase them. These highly volatile and often humorous cryptocurrencies, commonly associated with dogs, will be subject to specific criteria as part of this initiative.
Despite their lack of value, these tokens have grown to be a significant industry with occasionally frustrating returns.
However, a large number of them are also blatant frauds designed to benefit their creators, who can produce them fast and inexpensively on permissionless blockchains where everyone may trade them.
The Avalanche Foundation stated in a statement on Tuesday that it has “already started” purchasing meme coins using funds from its $100 million “Culture Catalyst” fund for cultural endeavours, regardless of one’s philosophical stance on the topic.
The three-page rule set states that meme coins must be native to the Avalanche blockchain and independent of their creators to be taken into consideration.
Furthermore, tokens that have been hoarded by whales, have not been examined by security firms, or were introduced without whitelists will not be well received by the Foundation.
The foundation stated that the guidelines are negotiable and that merely adhering to them does not ensure their adoption. However, starting in January 2024, they have to achieve the following minimums:
- A minimum of 2,000 holders, with the top 100 holding less than 60% of the total supply
- Over $200,000 in liquidity provided by a minimum of 50 providers
- A minimum $1 million market cap
- Minimum of $100,000 in trading volume per day over two weeks.
Also Read: Avalanche Foundation Will Buy Memecoins To Support ‘Culture’
