The Avalanche Foundation released its criteria to establish which memecoins are eligible for purchase in its $100 million Culture Catalyst program, the non-profit organization announced Tuesday morning. 

The criteria framework follows Avalanche’s announcement on Dec. 28, 2023 that it would invest in meme coins. On Tuesday, the foundation disclosed that it has already begun purchases of meme coins, but did not respond to questions from Unchained about the name of the coins or how much it has invested in them.  

The disclosure that Avalanche’s Culture Catalyst program has purchased tokens and set eligibility criteria comes as meme coins and the wider crypto market have slid in value recently.

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The foundation outlined multiple eligibility criteria regarding security, maturity and popularity, among other factors. 

  • Project teams must fairly launch the tokens, which includes whether the creator of the community token contract renounced ownership, whether the project team burned or adequately locked initial liquidity, whether the core members implemented protection measures against crypto whales, and whether founders reserved an allocation for themselves.
  • The tokens must be resistant to snip bots, or automated trading algorithms tasked with executing trades and taking advantage of price differentials in markets, typically in a matter of milliseconds. 
  • The coins must be secure, which means community members, professionals and team members have verified, audited and performed due diligence on the creator’s address and the token’s contract. 
  • The coin must have at least 2,000 unique holders, more than $200,000 in total liquidity, a fully diluted market capitalization of at least $1 million, and an average daily trading volume exceeding $100,000 on Avalanche decentralized exchanges. 
  • The token’s top 100 holders must collectively own less than 60% of the total supply and
  • The coin must have more than 50 liquidity providers. 
  • Tokens must be older than one month.

“The eligibility criteria outlines the bare minimum characteristics that a community coin should possess in order to be taken into consideration,” wrote the non-profit. “The Foundation’s efforts to support community coins are performed on an ongoing basis. This enables newly emerging coins to potentially participate in the program as soon as they meet the minimum eligibility criteria,” it added.