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.
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 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.
As of January 2024, the specific criteria outlined by the Foundation for community coins eligibility include –