The Avalanche Foundation has outlined guidelines for purchasing meme coins on the Avalanche Blockchain, indicating a strategic approach to the volatile meme coin market. The eligibility framework published by the Foundation outlines the rules that potential meme coins must adhere to if they wish to be considered for acquisition.
Recognizing the unique nature of meme coins, known for their humor and unpredictability, the Foundation has set specific criteria for evaluating meme coins. Key rules include independence from creators, meaning meme coins must be native to the Avalanche Blockchain and not have allocations or clones on other blockchains, and avoidance of whale ownership and security risks, preferring coins not hoarded by large holders and requiring scrutiny by security firms.
While the eligibility criteria are defined, the Foundation emphasizes that these rules are subject to change. Meeting the criteria does not guarantee acquisition, suggesting that other factors may influence the Foundation’s decisions. As of January 2024, meme coins seeking evaluation must meet minimum requirements including diverse ownership with the top holders owning less than 60% of the total supply and having at least 2,000 owners, sufficient liquidity and market value with over $200,000 provided by at least 50 providers and maintaining a market value of at least $1 million, and a minimum average daily trading volume of $100,000 over a two-week period.
The Avalanche Foundation emphasizes its commitment to embracing the diversity of creativity, culture, and camaraderie in the Blockchain space. It views meme coins, along with community-created NFTs and similar tokens, as ‘community coins’ that contribute to the cultural initiatives it supports.
Although the Foundation has confirmed the start of acquisitions using funds from its $100 million “Culture Catalyst” fund, specific details about the tokens purchased, allocated capital, and active management strategies have not been disclosed.