Andre Cronje Proposes Framework to Bolster Security for Community and Meme Coins
Luisa Crawford Apr 09, 2024 09:10
Crypto pioneer Andre Cronje outlines a new strategy for launching community and meme coins, aiming to enhance investor protection.
Andre Cronje, the founder of Yearn.finance and co-founder & architect of the Fantom Foundation, has proposed a novel framework designed to create a safer environment for both the community and investors interested in meme coins. In a recent post, Cronje outlined the risks associated with the current landscape of meme coins, such as team members selling tokens, early investors offloading large amounts, liquidity removal, and tokens having access controls.
To combat these issues, Cronje has opened a direct line of communication via Telegram or Twitter for those interested in launching a community or meme coin. He is offering to assist with the launch provided that the idea is not offensive or derogatory towards real individuals or projects.
Cronje's proposal includes the following stipulations:
- Marketing Allocation: Up to 10% of tokens may be set aside for marketing-related expenses, including exchange listings, promotions, and airdrops. This portion will be secured in a multisig wallet, necessitating the approval of two project members and at least one foundation member.
- Team Support: A maximum of 5% of tokens can be allocated to support team expenses and will be similarly locked in a multisig wallet.
- Liquidity Provision: The bulk of the tokens, amounting to 85%, will be paired with 100,000 FTM in a liquidity pool (LP) under the control of the foundation's multisig wallet. Any Fantom-based automated market maker (AMM) can be nominated for this LP. If the LP's FTM balance hits 2 million or more, the initial 100,000 FTM will be retrieved to cover initial costs, and the remainder will be burned.
- No Minting or Ownership: The token will be designed without any minting or ownership capabilities, eliminating the risk of unchecked token creation or centralized control.
- Launch Coordination: Cronje will personally coordinate the token's launch on Twitter, ensuring a structured and well-publicized introduction to the market.
- Transaction Limits: To prevent market manipulation, the token will have a built-in restriction that disallows single transactions from exceeding 1% of the LP pool, thus avoiding launch sniping and large dumps by early adopters.
Cronje believes that these measures will significantly reduce the risks typically associated with community and meme coins. By implementing such a framework, the intention is to foster a more responsible and secure meme coin ecosystem that protects investors and supports sustainable project growth.
The crypto community awaits to see how this proposal will resonate with project creators and investors alike. As the landscape continuously evolves, such proactive steps by influential figures like Andre Cronje could pave the way for a more stable and trustworthy digital asset environment.
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