- Avalanche Foundation has detailed the eligibility criteria for meme coin projects to qualify for its purchasing program under the $100 million Culture Catalyst fund.
- Requirements include a minimum holder count, liquidity provisions, market cap, and token distribution, emphasizing community engagement and culture.
Avalanche’s Meme Coin Investment Framework
The Avalanche Foundation, dedicated to nurturing the Avalanche ecosystem, has recently unveiled specific criteria for its meme coin purchasing program. This move comes as part of the Foundation’s broader effort to support various projects within the Avalanche network through its $100 million Culture Catalyst fund, initiated in 2022.
Eligibility Criteria for Meme Coins
To be considered for investment under this program, meme coin projects must meet several key criteria:
- Holder Diversity and Concentration: Projects must have at least 2,000 unique token holders, with the top 100 holders possessing less than 60% of the total token supply. This requirement ensures a fair distribution of tokens, reducing the risk of market manipulation by a small group of holders.
- Liquidity and Market Presence: A liquidity threshold of at least $200,000 is required, along with 50 or more liquidity providers, unless a significant portion of the liquidity is burned. Additionally, the meme coin should be native to the AVAX chain, have a fully diluted market cap exceeding $1 million, and demonstrate a trading volume above $100,000 in AVAX decentralized exchanges for a minimum of two weeks. These conditions ensure the project’s stability and market relevance.
The Avalanche Foundation emphasizes the cultural and community value of meme tokens, acknowledging their role in fostering engagement and spirit beyond their humorous and viral nature.
Discretionary Investment Decisions
While meeting these criteria makes a meme coin project eligible, it doesn’t guarantee investment from the Foundation. The selection process involves additional factors, and the Foundation reserves the right to make final investment decisions at its discretion. This approach allows the Foundation to consider the broader impact and potential of projects beyond just quantitative metrics.
Cultivating Community and Culture
The Avalanche Foundation’s structured approach to meme coin investments underlines its commitment to fostering a diverse and vibrant ecosystem. By setting clear standards, the Foundation aims to support projects that contribute positively to the community culture, ensuring a healthy and sustainable growth trajectory for the Avalanche network.