The Avalanche Foundation has recently released its Eligibility Criteria Framework, laying out the requirements for consideration of support as an official 'Community Coin', which the foundation describes as meme-coins, NFTs, and other tokens created by the community for culture, engagement and entertainment. The announcement closely follows the foundation’s decision to purchase certain Avalanche-based meme coins in order to create a collection, also within its Culture Catalyst program, which aims to empower creators and innovation and promote blockchain adoption. The foundation has reportedly already started to deploy capital into coins using money from its $100 million Culture Catalyst fund.
“These coins, often inspired by internet culture and humour, go beyond mere utility assets; they represent the collective spirit and shared interests of diverse crypto community. The Avalanche Foundation intends to start using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme-coins.”
The new framework requires coins to be native to the Avalanche blockchain, fairly launched, secure and highly liquid. Coins that meet the initial criteria will be further analysed in order to narrow down those coins suitable for investment. The stats required include:
- at least 2,000 unique holders
- less than 60% of the supply owned by the top 100 holders
- total liquidity of at least $200,000
- at least one month old
- market capitalisation not less than $1 million
- daily trading volume of at least $100,000
On the one hand it might seem frivolous for the nonprofit organisation overseeing the development of the entire Avalanche ecosystem to pay so much attention to 'amusing' chicken coins created for entertainment purposes only. However, it could be a smart idea to help maintain the ecosystem’s stability. Meme-coins are certainly playing an important role in the crypto market and it seems are here to stay for at least the short term.
The foundation’s financial encouragement for creators to produce more stable, secure and liquid tokens could eventually protect the blockchain and its users from the failing coins and pure scams that currently appear daily in the world of dog-related coin trading.
Officially embracing meme-coins, which often face stigma and mockery within the crypto community (and even more so outside of it), shows the network’s support for those people who are a part of the subculture. That could increase users’ loyalty and engagement in the ecosystem’s development and thus promote the blockchain.
“I equate meme-coins to the power of social movements, and you cannot have a blockchain reach massive scale without a powerful social movement behind it,” - crypto researcher and Avalanche advocate Emperor Osmo.
While meme-coins are pretty much useless by definition and ridiculously unstable, they can also bring some positive impact to a network. In search of the next big meme-coin, traders actively explore new blockchains, thus attracting more users, especially youngsters, to new emerging ecosystems. Their simple and amusing nature also attracts new users who are not especially interested in the more serious and expensive Bitcoin or Ethereum.
