The Avalanche Foundation has broadly categorized meme coins, NFTs, and similar tokens designed by the community for cultural expression and interaction as “community coins.”
The Avalanche Foundation has unveiled eligibility criteria designed for meme coins, which the platform will consider supporting.
On Tuesday, the organization behind the Avalanche blockchain introduced an “eligibility framework,” providing guidelines for its unique effort to acquire meme coins. Should the Avalanche Foundation choose to acquire them, the creators of these often highly volatile crypto assets must adhere to specific criteria outlined in this initiative.
Avalanche Foundation’s Criteria for Meme Coins in Focus.
The Avalanche Foundation has started purchasing certain meme coins using funds from its $100 million “Culture Catalyst” initiative dedicated to cultural projects. As part of this, the foundation has now introduced a set of eligibility criteria designed to identify community coin projects that show stability, growth potential, and a commitment to fair practices in the industry, according to its official blog post.
To ensure a fair launch, community coins must renounce ownership, burn or lock initial liquidity, implement whale protection, and allocate no reserves for the team. Measures against snipe bots include providing a head start or whitelist opportunities for genuine community members.
Security is emphasized through verified contracts, audits, community due diligence, and the use of automated tools. A coin must have a broad holder count and low whale concentration, and it must employ liquidity provisioning and management measures.
Additionally, a minimum lifespan, market cap, and daily trading volume are stipulated, highlighting the importance of community involvement and sustained market presence.
Community tokens must be native to the Avalanche ecosystem, reinforcing the commitment to the platform’s unique environment. The criteria serve as a framework for developers to align with the foundation’s values and contribute to a robust and secure ecosystem.
2024 Community Coin Criteria
As of January 2024, the specific criteria outlined by the Foundation for community coins eligibility include –
Holder Count: The community coin must boast a minimum of 2,000 unique holders.
Concentration: The top 100 token holders, excluding centralized exchanges, should collectively own less than 60% of the total supply.
Liquidity: The project is required to maintain a total liquidity value of at least $200,000 or its equivalent.
Liquidity Providers: The project should enlist 50 or more liquidity providers unless a significant portion of the liquidity has been renounced or burned.
Lifespan: The project should have been in existence for a minimum period of one month.
Market Cap: The fully diluted market capitalization of the project must be $1 million or more.
Daily Trading Volume: The project is expected to maintain an average daily trading volume of at least $100,000 on Avalanche ecosystem decentralized exchanges for a consecutive two-week period.