Fantom’s Andre Cronje shares ‘safer meme coin’ thesis

by

Andres Cronje, a blockchain developer, shared insights on creating a safer meme coin and fostering a more secure community within the Fantom network. He emphasized the importance of clear and open token economics as a key measure to reduce risks associated with these projects.

In his blog post, Cronje expressed that the primary apprehensions regarding meme coins center on the following issues: teams cashing out their tokens, early investors selling large quantities, developers taking away liquidity, and creators maintaining control after the launch.

Several recently introduced meme tokens have faced clear problems, with some unfortunately being rug pulls or cash grabs. In many instances, early investors participating in pre-sale fundraisings negatively impacted market prices after launch. Alternatively, the creators of these meme coins sold large quantities to new users on the open market.

Andre Cronje’s meme coin fix

Andres Cronje, a co-founder at Fantom Foundation, suggested setting aside as much as 10% of the total token supply for marketing costs, which may include airdrops, exchange listings, private deals with influential figures, and social media advertising. He added that this amount would be safeguarded in a multi-approval wallet where three approvals are mandatory before any transaction can occur.

In his Medium post, Cronje proposed that a multisig wallet holding around 5% of the total supply could cover meme team costs. The rest, amounting to approximately 85% of the tokens, would be allocated for a liquidity pool in partnership with Fantom’s native cryptocurrency FTM.

At the start, 100,000 FTM would be given to any Fantom marketplace that receives the most support from the meme coin community. Moreover, Cronje proposed removing and destroying the liquidity if the market provider’s FTM holdings surpassed two million FTM.

The Fantom developer strongly emphasized that the meme coin should lack the ability to be created or owned by anyone, and was willing to oversee the initiation of this project on platform X.

A purchase or sale using the token should not exceed 1% of the designated LP pool in one transaction. This rule prevents initial launch price manipulation and large future sell-offs by early members, without affecting other existing liquidity pools.

Andre Cronje, Fantom Foundation co-founder

Because of several provocative memes about Ethereum and Solana causing controversy, Cronje made it clear that he won’t support any controversial projects or ideas that involve referencing real people.

Read More

2024-04-09 17:42