The Avalanche Foundation, a non-profit organization steering the development of the Avalanche network, has opened a window into its selection process for meme coins under its $100 million Culture Catalyst Program. Launched last month, the program aims to inject vitality into the world of community-centric tokens, stirring both applause and skepticism within the crypto community.
In a blog post published on Tuesday, the Foundation outlined stringent eligibility criteria designed to spotlight meme coins demonstrating stability, growth potential, and a steadfast commitment to fair practices. The move comes as a response to the skepticism that followed the program’s announcement, with critics questioning the allocation of resources to meme coins, often deemed speculative in nature.
Key among the criteria is the requirement for a “fair launch,” a term indicating the absence of token reservations for founders. Additionally, the Foundation seeks to avoid concentration of token supply among crypto whales, aiming for a more widely distributed ownership.
“The purpose of disclosing the eligibility criteria here is to enunciate the Foundation’s values and provide direction to the community,” the Avalanche Foundation expressed in the blog post.
A meme coin, a genre typified by cryptocurrencies launched around internet memes or recent events, lacks explicit utility and is often considered highly speculative by experts. Examples include Dogecoin (DOGE), Ethereum’s Shiba Inu (SHIB), or Solana’s BONK.
Contrary to the criticism that labeled Avalanche’s investment plans as a potential misuse of resources, the Foundation contends that meme coins contribute significantly to “community value,” “culture,” and “engagement.” These attributes categorize them under the broader investment umbrella termed “community coins.”
For a meme coin to be considered for investment by Avalanche, it must meet specific criteria. The token must boast at least 2,000 unique holders, with a fully diluted market cap exceeding $1 million. Importantly, the top 100 holders combined cannot control more than 60% of the total supply.
Furthermore, the meme coin should achieve an average daily trading volume of $100,000 across two Avalanche decentralized exchanges for a minimum of two weeks. The project is also required to possess a total liquidity pool of at least $200,000, with a minimum of 50 liquidity providers.
Revealing that the Foundation has already deployed some capital into certain community coins as part of the program, the blog post left specific tokens undisclosed. A Foundation spokesperson, when pressed for details, indicated that over $90 million worth of undeployed assets remain available for the culture catalyst initiative.
The announcement of the Culture Catalyst Program in December triggered notable market movements, with certain Avalanche-based meme coins, like Husky Avax (HUSKY), experiencing a surge of over 60% on the day of the announcement. However, subsequent market dynamics have seen these gains dissipate.
As the Avalanche Foundation takes steps to demystify its selection process, the crypto community watches closely, contemplating the potential impact of this unique approach to meme coin investments on the broader blockchain landscape.
