- The Fantom Foundation is launching a $6.5 million developer fund to attract creators of “safer memecoins” to its blockchain network.
- The foundation wants to introduce technical and non-technical measures to ensure memecoin projects are not outright scams or rug pulls.
- Measures proposed include having the foundation co-control the tokens’ startup liquidity and locking a portion of token supply in a multi-signature wallet requiring foundation approval.
The Fantom Foundation is aiming to attract memecoin developers to its layer-1 blockchain by offering $6.5 million in rewards. The goal is to create an environment for “safer memecoins” with technical and non-technical measures to prevent outright scams.
Attracting Memecoin Developers
Fantom Foundation CEO Michael Kong hopes to replicate the success of other chains like Solana and Coinbase’s Base Layer 2 that have seen significant memecoin trading volume. Kong announced a $10 million FTM prize pool, worth $6.5 million, for memecoin teams during the April 30 MemeGlobal event in Sydney.
Kong wants to grow Fantom’s user base through the popularity of memecoins. He said Fantom’s interest is acquiring customers by giving them what they want – whether that’s DeFi, NFTs, or memecoins in a safe environment.
Measures for Safer Memecoins
Andre Cronje, Fantom’s co-founder, proposed measures for safer memecoins in April:
- Memecoin developers issue tokens with Fantom Foundation as a co-controller to oversee startup liquidity
- Token supply split – 5% to team, 10% for marketing in a multi-sig wallet requiring a Foundation member as co-signer, 85% in a FTM-paired liquidity pool
- Fantom contributes 100,000 FTM (~$65,000) to the liquidity pool
- If FTM in the pool reaches 2,000,000, the original 100,000 FTM is removed and the rest burned
This democratic launch and distribution is intended to prevent concentration in a few whale wallets.
Fantom Blockchain Growth
With $1.83 billion total value locked, Fantom is the 38th largest blockchain network. It trails Solana, Base Layer 2 and others hosting memecoin volume. Through memecoin incentives, Fantom hopes to grow its user base and compete with other chains.
