Andre Cronje advocated issuing meme coins on Fantom to mitigate team dumping and liquidity issues. The plan allocates tokens for team expenses, marketing, and liquidity pool support to ensure investor safety and equitable distribution
On Tuesday, Fantom Foundation co-founder Andre Cronje offered a fair and safe way to issue meme coins on the network to avoid the hazards of buying non-serious tokens.
In the past year, crypto investors have enjoyed issuing and trading meme coins, which are worth billions. Solana and Base network owners and users have made millions from a meme coin craze, but the community and investors are at risk. Cronje said dangers include teams dumping tokens after social media excitement, early investors selling big sums, liquidity loss, and developers changing token code.
Tokens will be issued with the Fantom Foundation, a non-profit committed to Fantom blockchain development and maintenance, as one of the signers regulating liquidity pools. Up to 5% of tokens for meme team expenses. The multisig will require signatures from two project members and at least one foundation member, Cronje said.
“The remaining 85% of tokens will be placed in a foundation multisig FTM/token LP. FTM 100,000 will be delivered. Any Fantom trade can be LP-nominated, he said. An exchange's liquidity pool (LP) smart contract contains two or more tokens and allows trading.
Up to 10% of tokens can be used for marketing expenses like exchange listings and locked in a multisig requiring two project members and at least one Foundation member.
If the LP token's FTM reaches 2,000,000 FTM, the original 100,000 FTM (5%) will be taken to cover the initial cost and the remainder will be burnt, Cronje said. Fantom's Cronje is the latest blockchain team to directly engage with meme coins, a change from prior cycles where such tokens were recognized as tradeable assets.
This year, the Avalanche Foundation, a similar organization for the network, proposed a fund to invest in and grow meme coins (cultural coins). It bought five tokens in March. BNB Chain developers announced a $1 million prize pool last week for meme coin developers. The pool selected distinctive projects for growth investment.
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