Crypto Quill

The Avalanche Foundation, the organization behind the Avalanche blockchain, has announced the rules for meme coin projects to receive investment from its Culture Catalyst Fund. The fund, which was launched in December 2023, aims to support the growth of creative and cultural communities on Avalanche.

What is the Culture Catalyst Fund?

The Culture Catalyst Fund is a $100 million initiative by the Avalanche Foundation to empower the next generation of creators and cultural brands. The fund was originally designed to invest in non-fungible token (NFT) artists, but later expanded to include meme coins and other community-driven projects.

The fund seeks to better position Avalanche to cultivate and support the many new forms of creativity and innovation that emerge from blockchain technology. By funding these communities, the fund hopes to scale their values and create on-chain opportunities that shape entire cultural sectors globally.

What are the rules for meme coin projects?

The Avalanche Foundation has revealed the criteria that meme coin projects must meet to be eligible for funding from the Culture Catalyst Fund. The criteria are as follows:

• The project must be based on the Avalanche blockchain and use the AVAX token as its native currency.
• The project must have renounced its contract ownership, meaning that no one can change the code or mint new tokens.
• The project must have a low ownership concentration, meaning that no single address or entity holds more than 10% of the total supply.
• The project must have a high level of liquidity, meaning that at least $200,000 worth of tokens are available in decentralized exchanges from at least 50 different providers.
• The project must have a large and active community, meaning that it has at least 2,000 unique holders and a positive social sentiment.
• The project must have a fair launch, meaning that it did not conduct any pre-sale, private sale, or initial coin offering (ICO).
• The project must have a clear vision and purpose, meaning that it has a website, a whitepaper, a roadmap, and a team.
• The project must have been in existence for at least one month, meaning that it has a proven track record and history.

The Avalanche Foundation stated that these criteria are flexible and not exhaustive, and that it will evaluate each project on a case-by-case basis. The foundation also said that it will not disclose the amount or the terms of the funding for each project, as it respects the privacy and autonomy of the communities.

Why is the Avalanche Foundation supporting meme coins?

The Avalanche Foundation believes that meme coins are an important part of the blockchain culture and ecosystem, as they represent the creativity, humor, and diversity of the community. The foundation also sees meme coins as a gateway for new users to enter the blockchain space and learn about its benefits and possibilities.

The foundation said that it wants to support meme coins that have a positive impact on the Avalanche network and the wider society, and that align with its values and vision. The foundation also said that it wants to foster a culture of collaboration and innovation among the meme coin projects, and that it will provide them with technical, marketing, and legal support.

The foundation has already started to deploy capital into some meme coin projects, such as Coq Inu (COQ), a rooster-themed token that has a market cap of $75 million and is the most-traded meme coin on Avalanche. The foundation said that it will announce more meme coin investments in the future, and that it welcomes applications from any project that meets the criteria