In a bid to tap into the booming $50 billion memecoin sector, Fantom, a layer-1 blockchain network, is taking steps to establish a safer environment for memecoin projects.
In a bid to tap into the booming $50 billion memecoin sector, Fantom, a layer-1 blockchain network, is taking steps to establish a safer environment for memecoin projects. The Fantom Foundation, led by CEO Michael Kong, plans to reserve $6.5 million worth of its native FTM token as a reward for developers who adhere to technical and non-technical measures aimed at preventing scams and rug pulls.
Networks like Solana and Ethereum layer-2 Base have dominated the recent memecoin trading frenzy. To attract memecoin traders to the Fantom network, Kong announced the establishment of a 10 million FTM prize pool (equivalent to $6.5 million) for memecoin teams during the MemeGlobal event held in Sydney on April 30. Kong sees the memecoin phenomenon as an opportunity to acquire more customers and replicate the success observed on other chains.
Kong emphasized that Fantom's goal is to grow its network by catering to customer demands. Whether it's DeFi, NFTs, or memecoins, Fantom aims to provide an environment that enables the safe development of memecoins and aligns with the preferences of its users. According to Kong, a successful memecoin launch involves a democratic distribution of tokens to the community, avoiding heavy concentration among a few large holders.
The Foundation's co-founder, Andre Cronje, previously proposed measures for safe memecoins, including having the Fantom Foundation 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% for marketing, locked in a multi-sig wallet requiring Foundation member approval. The remaining 85% would be placed in an FTM paired liquidity pool, with the Foundation contributing 100,000 FTM.
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