8 months ago
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Avalanche will off $1 million in incentives via the Memecoin Rush program to improve liquidity and general accessibility of community coins.
The Avalanche Foundation has announced the launch of its $1 million Memecoin Rush program. The Foundation launched the first phase of the mining incentive program, designed to improve liquidity and increase momentum for the community coin ecosystem on Avalanche.
Memecoin Rush Offers Incentivized Trading Among Others
The new Memecoin Rush is an extension of the Avalanche Rush, an existing liquidity program launched in 2021 to support the growth and development of Avalanche DeFi (decentralized finance). Both projects indicate the Avalanche Foundation’s devotion to improving the general state of DeFi, by enhancing accessibility and decentralization through the Avalanche ecosystem.
Avalanche is starting the first phase of Memecoin Rush with Trader Joe and SteakHut, both DeFi platforms. Users and token holders on these Avalanche projects will enjoy incentivized trading as well as liquidity strategies for specific tokens. In the next few weeks, the Avalanche Foundation will add more projects.
Specifically, TraderJoe is a decentralized exchange (DEX) that uses the capital-efficient Liquidity Book protocol. The incentives TraderJoe launches will cover select tokens chosen according to holder and market cap. The program will reward stakers with points for each pool and post updates on a leaderboard. In addition, stakers may access bonus multipliers to move them higher on the leaderboard and increase their share of rewards. These rewards will be paid in AVAX and several other tokens. Users can access vaults on community coins, including NoChill, Husky, Coq, Meat, Kong, and others.
For SteakHut, a platform for decentralized market making and liquidity management, there will be liquidity pools for Coq, Tech, Kimbo, and NoChill, which will receive UniswapV3 liquidity mining program rewards.
Last year, the Avalanche Foundation announced its decision to acquire native Avalanche community coins. At the time, the Foundation said the acquisition was to support its Culture Catalyst program, which inspires innovation in the ecosystem, encourages Web3 creators, and contributes to the general adoption of blockchain technology. The Avalanche Foundation later publicized its community coin holdings, which include five tokens: Tech, Gecko, Coq Inu, Kimbo, and NoChill.
Avalanche Community Coins Expansion
Interestingly, the Avalanche Foundation is looking into expanding its list of community coins. At the moment, the Foundation is evaluating tokens following the experimental ERC-404 standard, which merges features of the fungible ERC-20 and non-fungible ERC-721. ERC-404 introduces the idea of semi-fungible tokens, which may allow users own percentages of a non-fungible token (NFT).
The Avalanche Foundation has an eligibility criteria for assessing all community coin projects. These include several points like security and a minimum holder count of 2,000. In addition, the asset should have a low concentration, specifically that the top 100 token holders, excluding centralized exchanges, should hold less than 60% of the token’s total supply. There are also several other points, including a daily trading volume of at least $100,000, a minimum fully diluted market cap of at least $1 million, and resistance to snipe bots, among others.
