Avalanche continues to push memecoin with a $1M reward for liquid providers.
The Avalanche Foundation – the organization behind the smart contract blockchain platform Avalanche – is doubling down on memecoins, a liquid mining incentive program to encourage community-owned coins in the ecosystem.
On March 21, the foundation announced the “Memecoin Rush” offering $1 million in Avalanche (AVAX) tokens to traders and liquidity providers of Avalanche-based community coins.
The first phase of the program will launch on decentralized finance (DeFi) platforms Stakehut and Trader Joe's. Avalanche says these platforms will “incentivize trading and increase liquidity mechanisms” for community tokens in the network.
According to the announcement, rewards will be given to liquid providers in memecoins Coq, NoChill, Tech and Kimbo in combination with AVAX tokens.
Avalanche also lists Peach, Kimbo, Nochil, Geek, Tech, Husky, Mew, Kong, Meat, and Kingshit as beneficiaries of the incentive program's coffers.
While crypto community figures like Ethereum founder Vitalik Buterin have criticized memecoin traders, Avalanche seems to have a different view.
On December 29, it announced that a $100 million cultural stimulus fund would be used to purchase memecoin assets based on the network.
Avalanche says that memecoins represent the “common spirit and common interests of the various crypto communities” and go “beyond utility assets.”
He also pointed out that the initiative aims to position its blockchain as a network that supports new forms of innovation and culture.
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On January 24, Avalanche clarified that not all memecoins will get a piece of the $100 million fund. The foundation shared eligibility criteria such as termination of contracts, holding low ownership stakes among whalers and having high liquidity.
The Avalanche Foundation said the project should take at least a month to complete.
In March, memecoin on the Solana network raised more than $100 million in three days in what one community member described as a “massive collapse.”
Memecoin's founders received millions between March 15 and 18 in a controversial fundraising method called a “pre-sale.”
In this crowdfunding model, investors send Solana (SOL) tokens to wallet addresses in hopes of receiving a weighted distribution of tokens after the live release. However, there is no guarantee that investors will receive tokens in exchange for SOL.
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