Avalanche Foundation Embraces Memecoins With $1M Incentive Program
Summary:
The Avalanche Foundation, creator of the Avalanche smart contract blockchain platform, is launching a liquidity mining incentive program called "Memecoin Rush," which will inject $1 million in Avalanche (AVAX) tokens to boost trading and liquidity for Avalanche-based community coins. The initiative will start on DeFi platforms SteakHut and Trader Joe, and will reward liquidity providers in certain memecoin- and AVAX-paired pools. The foundation further clarified that not all memecoins will qualify for the $100 million culture catalyst fund benefits and laid out specific eligibility requirements.
In a bid to amplify memecoins, the Avalanche Foundation - the entity behind Avalanche, a blockchain platform for smart contracts - is launching a liquidity mining incentive initiative aimed at accelerating the use of community-run cryptocurrencies within its framework. On March 21, "Memecoin Rush," a campaign offering $1 million in Avalanche (AVAX) tokens to encourage trade and liquidity supply of Avalanche-based community coins, was unveiled. This initial phase will commence on SteakHut and Trader Joe, two decentralized finance (DeFi) platforms. In an attempt to boost trade and add liquidity schemes for community tokens, these platforms have been selected by Avalanche. As per the foundation's declaration, rewards will go to those providing liquidity in memecoin-paired pools such as Coq, NoChill, Tech and Kimbo combined with the AVAX token. Furthermore, community coins like Coq, Kimbo, NoChill, Gec, Tech, Husky, Meow, Kong, Meat, and Kingshit have been identified as beneficiaries from the incentive program's vaults. Despite getting criticized by crypto world luminaries including Ethereum co-founder Vitalik Buterin, Avalanche appears to view memecoins differently. On Dec. 29, the foundation disclosed the intention to acquire memecoin assets using its $100 million culture catalyst fund. According to Avalanche, memecoins symbolize the "unified spirit and mutual interests of all-encompassing crypto communities," insisting they possess attributes that transcend ordinary utility assets. The initiative, they said, aims to portray its blockchain as a hub for new creative and cultural manifestations. On Jan. 24, the foundation clarified that not all memecoins will receive a share from the $100 million fund. They set eligibility criteria like contracts being renounced, low ownership concentration among large investors, and ample liquidity. Projects should also be at least a month old. In March, a Solana network memecoin hit a record high, termed as "peak degeneracy" by a community member, with token projects amassing over $100 million within a span of just three days. Between March 15 and 18, memecoin creators hauled in millions via a contentious "pre-sales" fundraising technique. This model entailed investors transferring Solana tokens to a specific wallet address, hoping to obtain a proportionate distribution of tokens upon launch. However, there's no assurance that participants will get tokens in exchange for their Solana money.
Published At
3/22/2024 2:53:53 PM
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