The Avalanche Foundation, the organization responsible for the Avalanche blockchain platform, is taking a strong interest in memecoins and has launched a liquidity mining incentive program to promote the growth of community-owned coins within its ecosystem.
The foundation recently announced the “Memecoin Rush” initiative, which offers $1 million worth of Avalanche (AVAX) tokens as an incentive for traders and liquidity providers of community coins based on Avalanche. The program’s first phase will be implemented on the decentralized finance platforms SteakHut and Trader Joe, which will encourage trading and add liquidity strategies for community tokens within the network.
The rewards will be given to liquidity providers on liquidity pools of memecoins such as Coq, NoChill, Tech, and Kimbo, paired with the AVAX token. Additionally, Avalanche has identified several memecoins, including Coq, Kimbo, NoChill, Gec, Tech, Husky, Meow, Kong, Meat, and Kingshit, as beneficiaries of the incentive program’s vaults.
While memecoin traders have faced criticism from figures like Ethereum co-founder Vitalik Buterin, Avalanche has taken a different perspective. In fact, on December 29, the foundation announced that its $100 million culture catalyst fund would be used to acquire memecoin assets based on the network.
According to Avalanche, memecoins represent the collective spirit and shared interests of diverse crypto communities and go beyond being mere utility assets. The initiative aims to position the Avalanche blockchain as a network that supports new forms of creativity and culture.
However, not all memecoins will receive funding from the $100 million fund. Avalanche has established eligibility requirements, including having renounced contracts, low ownership concentration among whales, and high levels of liquidity. Additionally, the project must be at least one month old.
In March, memecoins on the Solana network experienced what one community member described as “peak degeneracy,” with token projects raising over $100 million in just three days. Memecoin founders received millions through a controversial fundraising method called “pre-sales,” where investors send Solana (SOL) tokens to a wallet address in the hope of receiving a weighted distribution of tokens once it goes live. However, there is no guarantee that investors will receive the tokens in exchange for their SOL.