The Avalanche Foundation, the organization responsible for the smart contract blockchain platform Avalanche, is intensifying its focus on memecoins by introducing a liquidity mining incentive program. The goal of this program is to generate momentum for community-owned coins within the Avalanche ecosystem.
Dubbed “Memecoin Rush,” the initiative was announced on March 21 and offers $1 million in Avalanche (AVAX) tokens as a reward for traders and liquidity providers who engage with community coins based on the Avalanche network. The first phase of the program will be implemented on the decentralized finance (DeFi) platforms SteakHut and Trader Joe. Avalanche stated that these platforms will encourage trading and implement liquidity strategies for community tokens within the network.
According to the announcement, liquidity providers who participate in liquidity pools of memecoins such as Coq, NoChill, Tech, and Kimbo, paired with the AVAX token, will receive rewards. Additionally, Avalanche listed several memecoins, including Coq, Kimbo, NoChill, Gec, Tech, Husky, Meow, Kong, Meat, and Kingshit, as beneficiaries of the incentive program’s vaults.
While figures in the cryptocurrency community, such as Ethereum co-founder Vitalik Buterin, have expressed skepticism towards memecoin traders, Avalanche has taken a different stance. On December 29, the foundation revealed that its $100 million culture catalyst fund would be utilized to acquire memecoin assets based on the Avalanche network.
Avalanche believes that memecoins embody the “collective spirit and shared interests of diverse crypto communities” and argues that they possess value beyond mere utility assets. The foundation also emphasized that the initiative aims to position its blockchain as a network that supports new forms of creativity and culture.
In January, Avalanche clarified that not all memecoins will receive funding from the $100 million fund. The foundation outlined eligibility requirements, including having renounced contracts, low ownership concentration among large holders, and high levels of liquidity. Additionally, the memecoin project must be at least one month old.
In March, memecoins on the Solana network reached what one community member described as “peak degeneracy,” with token projects raising over $100 million in just three days. Memecoin founders received millions of dollars through a controversial fundraising method called “pre-sales” from March 15 to 18. In this crowdfunding model, investors send Solana (SOL) tokens to a designated wallet address with the hope of receiving a weighted distribution of tokens once they go live. However, there is no guarantee that investors will receive the tokens in exchange for their SOL.
Source: Vitalik Buterin
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