Avalanche Shares Details on Which Memecoins it Will Buy

The Avalanche Foundation has provided insights into its strategy for acquiring meme coins under its "Culture Catalyst" initiative. 

The foundation, which oversees the Avalanche blockchain, has already initiated purchases using its $100 million fund dedicated to cultural initiatives, according to a recent CoinDesk report.

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Eligibility Framework

The Avalanche Foundation outlined its eligibility framework for selecting meme coins. The rules are stringent, ensuring that only meme coins independent of their creators and native to the Avalanche blockchain qualify. Here are the rules:

Fairly Launched: Community coins must adhere to principles of equity and egalitarianism during launch. Key requirements include renouncing ownership of the community token contract, burning or adequately locking initial liquidity, implementing whale protection measures, and ensuring no allocation is reserved for the team.

Snipe Bot Resistant: To mitigate the risk of snipe bots during launch, community coin developers are encouraged to implement measures such as providing a head start or whitelist opportunities to genuine community members.

Secure: Community coins should embody best practices throughout the development process, including verified contracts, audits, community due diligence, and the use of automated tools like DexScreener.

High Holder Count: A community coin must be widely held by a large number of users. There should be at least 2,000 unique holders.

Low Concentration: Whales should not possess large portions of the coin supply. The top 100 token holders (excluding exchanges) should own less than 60% of the total supply.

Broad Liquidity Provisioning: Measures like locked liquidity pools and transparent liquidity management at launch are essential. There should be at least 50 or more liquidity providers unless the majority has been renounced or burned.

High Liquidity: Community coins should focus on a large initial liquidity pool and offer incentives for liquidity providers. It is crucial to have a total liquidity of at least $200,000 or equivalent.

Minimum Lifespan: The coin should have been in existence for a minimum period to allow the community to understand it. It should be in existence for at least one month.

Minimum Market Cap: Community coins should maintain a strong market presence with a substantial sustained market cap. The fully diluted market cap should be $1 million or greater.

Daily Trading Volume: The project should demonstrate active community interest, as indicated by metrics such as daily transaction volume. The average daily trading volume should be at least $100,000 on Avalanche ecosystem DEXes for at least two weeks.

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Foundation's Cultural Endeavor

In a X (formerly Twitter) announcement on December 29, the Avalanche Foundation revealed its intention to purchase select Avalanche-based meme coins to create a unique collection. The foundation sees meme coins as more than utility assets, representing the collective spirit and shared interests of diverse crypto communities.

The Culture Catalyst initiative, launched in March 2022, aims to empower creators, spark innovation, and promote blockchain adoption. Worth noting, several Avalanche-based meme coins, such as COQ, husky (HUSKY), and shibx (SHIBX), have already gained prominence within the community.