Fantom Pledges $6.5M in Token Rewards to Promote Secure Memecoins Development
Summary:
Fantom, a Layer-1 blockchain, is encouraging safer memecoins with a $6.5 million prize pool for developers in a bid to enter the $50 billion sector. The strategy hopes to attract memecoin traders and increase safety measures for the tokens. The funds will be allocated to memecoin developers upon meeting certain security standards, preventing scams and fraud. Andre Cronje, co-founder of Fantom Foundation, has proposed measures for enhanced safety, including a split token supply model and decision-making controls, to build more secure memecoins.
The Layer-1 blockchain, Fantom, is propelling the concept of "more secure memecoins" by committing $6.5 million in its inherent FTM (FTM) token to motivate developers. This is an attempt to penetrate the approximately $50 billion sector. Fantom's CEO, Michael Kong, expressed to Cointelegraph his vision to establish a space for the launch of "more secure memecoins", implementing measures, both technical and non-technical, that guarantee projects don't immediately plunge into scam territory.
Platforms like Solana and Ethereum offshoot, Coinbase's layer 2 Base, have seen a high volume of meme coin trading, with Solana outpacing Ethereum at the height of the memecoin boom in March. However, there were approximately one in six memecoins on Base found to be fraudulent while 12 prominent meme-based initiatives on Solana, amassing a total of $26.7 million, were swiftly dropped by their creators.
To lure memecoin traders to Fantom and to heighten safety protocols for the tokens, Kong unveiled a 10 million Fantom (FTM) prize pool, equating to $6.5 million, up for grabs for memecoin teams at the April 30 MemeGlobal event in Sydney.
Kong emphasized the current memecoin trend as an opportunity to garner customers, aiming to mimic the triumph witnessed by other chains. His primary goal is to expand Fantom as widely as possible, which fundamentally comes down to customer engagement.
Kong envisages a successful memecoin as having a democratic inception involving a widespread dissemination of tokens engendering a sense of community, rather than holding the majority of tokens in merely a few hands.
To foster safe memecoins, Andre Cronje, co-founder of Fantom Foundation, suggested in April to have memecoin developers launch their token with the Fantom Foundation playing the part of a co-manager of the initial token liquidity.
Cronje also suggested splitting the token supply which would allocate 5% to the team, 10% for marketing locked in a multi-sig wallet requiring at least one Foundation member's signature. The remaining 85% would be placed in a Fantom paired liquidity pool (LP), with the Foundation contributing 100,000 FTM, currently valued around $65,000. If the FTM in the LP token reaches at least 2,000,000 FTM, the original 100,000 FTM (5%) would be reclaimed to cover the beginning costs and the rest of the LP would be destroyed, Cronje explained.
Fantom stands as the 38th largest blockchain network with a total value locked (TVL) of $108.3 million, according to DefiLlama. For comparison, Solana and Base are ranked fourth and sixth in terms of TVL.
Published At
5/1/2024 6:28:52 AM
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