Fantom Launches $6.5M Development Fund, Focusing on Secure Memecoins

Blockchain platform Fantom is taking steps to promote the concept of “safer memecoins” by allocating $6.5 million worth of its native FTM token to incentivize developers. The company aims to secure a portion of the nearly $50 billion memecoin sector. Fantom Foundation CEO Michael Kong explained that the goal is to create an environment where projects are not simply scams or fraudulent schemes. While the recent memecoin trading frenzy has predominantly taken place on Solana and Coinbase’s Ethereum layer-2 Base, a significant number of meme-based projects on these platforms have been abandoned or turned out to be scams. To attract memecoin traders to Fantom, Kong announced that the foundation would establish a 10-million-Fantom prize pool for memecoin teams. The intention is to replicate the success of other chains in acquiring customers and growing the platform. Kong emphasized the importance of a democratic launch for a successful memecoin, where tokens are distributed widely among the community rather than being concentrated in the hands of a few individuals. Fantom’s co-founder, Andre Cronje, proposed safety measures for memecoins, such as having the Fantom Foundation serve as a co-controller of the token’s startup liquidity. Cronje also suggested a token supply split, with 5% allocated to the team and 10% reserved for marketing, locked in a multisig wallet that requires the co-signature of a foundation member. The remaining 85% would be placed in an FTM-paired liquidity pool, with the foundation contributing 100,000 FTM. If the FTM in the LP token reaches at least 2,000,000 FTM, the initial 100,000 FTM will be removed to cover the initial cost, and the rest of the LP will be burned. Fantom currently ranks as the 38th largest blockchain network with a total value locked of $108.3 million, according to DefiLlama. By comparison, Solana and Base hold the fourth and sixth positions, respectively, in terms of total value locked. A recent investigation by Cointelegraph’s Magazine found that one in six new meme coins on Base were scams, while 91% had vulnerabilities.