With its recently unveiled $100 million 'Culture Catalyst' initiative, Avalanche Foundation aims to back meme coins centered around playful and comedic themes on its blockchain, despite their contentious nature due to volatility and potential misuse.
TLDR
- Avalanche Foundation has launched a $100 million 'Culture Catalyst' initiative aimed at supporting meme and other community-centric coins on its blockchain.
- Specific guidelines have been published for meme coins that wish to be considered for this fund, such as stipulations involving community governance, initial coin offerings, liquidity, market cap, and trading volumes.
- Eligibility criteria for these meme coins necessitate a minimum age of one month and must be original to the Avalanche blockchain.
- They believe meme coins contribute value through cultural and community interaction, although this perspective has faced criticism.
- The exact meme coins acquired remain under wraps, but the Foundation confirms they've already started putting funds into some coins.
Despite opposing opinions, the Foundation champions the notion that these coins enhance cultural and community engagement on the Avalanche platform.
There's a well-defined set of criteria that meme coins need to satisfy for investment, featuring checks on project authenticity and community-led ownership, with expectations around launch fairness, asset concentration, liquidity, market impact, and blockchain duration.
The prior year saw the launch of Culture Catalyst by Avalanche Foundation, designed to empower creators, ignite innovation, and encourage greater blockchain adoption, aiming to refine the landscape to nurture burgeoning creative avenues.
— Avalanche ???? (@avax) December 29, 2023
For example, eligible meme coins:
- Must be at least 1 month old,
- Criteria outline demands like having over 2,000 holders, with top holders owning less than 60% of the total supply.
- The fund seeks a substantial participation rate with at least 50 liquidity providers contributing more than $200,000.
- To qualify, meme coins must possess a minimum $1 million fully diluted market capitalization.
- Daily trading volume over a fortnight must exceed $100,000 on Avalanche's decentralized exchanges.
Flexibility is crucial, and even coins meeting all criteria aren't guaranteed investments from the fund.
Though specific purchases remain undisclosed, the Foundation has started funneling capital into select community coins, including Coq Inu, a meme coin themed around a rooster, boasting substantial market capitalization.
Reaction to the Avalanche Foundation's interest in meme coins varies widely, with enthusiasts seeing it as a catalyst for cultural engagement, user growth, and community buzz.
Critics argue it's inappropriate for a top-tier blockchain guardian to invest in such speculative, questionable assets, but the Foundation remains steadfast in its commitment to allow meme coins to expand its holistic vision. Avalanche participants.
