By
Kseniia Klichova
April 22nd, 2024
Cronje explained that community and meme coins launched under this framework will lack both minting and ownership capabilities, and that transactions “greater than 1% of the nominated LP pool in a single transaction” will not be permitted.
Andre Cronje, the co-founder of Fantom (FTM), has revealed a proposal framework aimed at delivering a safer environment for launching community and meme coins.
“Anyone wishing to launch a community / meme coin for their idea can contact me directly on telegram or twitter. Provide the idea, graphics, name, ticker, and concept. (disclaimer: I will not be assisting any meme that I consider to be offensive, or makes reference to any real person or project),” wrote he.
Safer community / meme coins on Fantomhttps://t.co/OumQRHojOi pic.twitter.com/MpXihI435C
— Andre Cronje (@AndreCronjeTech) April 9, 2024
The Proposal Framework
Cronje’s proposal highlights the goal, risks, and technical details put forward to create the token launch framework. He highlighted the risks associated with this kind of proposal, referring to team token selloffs, early investors selloffs, liquidity removal, and tokens with access controls.
The framework design seeks to mitigate these risks and highlights three key tokenomic requirements:
- Up to 10% of tokens allocated towards marketing:
Including expenses such as promotions, airdrops, and exchange listings, this allocation of tokens would be locked in a “multisig requiring signatures from 2 project members and at least 1 foundation member”.
- Up to 5% of tokens allocated to team expenses:
This allocation would also be locked in a multisig, requiring two project members and at least one foundation member for access and authorization.
- Remaining tokens to be placed “in a FTM/token LP in foundation multisig”:
The token creator would be given 100,000 FTM and can use any Fantom-based automated market maker (AMM) to establish the liquidity pool (LP). If the FTM in the LP reaches “at least 2,000,000 FTM”, the initial 100,000 FTM will be removed to cover initial costs and the rest of the LP burned.
Cronje further explained that tokens launched under this framework will lack both minting and ownership capabilities, and that transactions “greater than 1% of the nominated LP pool in a single transaction” will not be permitted, preventing launch ‘sniping’ and large selloffs by early members.
“As part of the initial LP I will coordinate the launch on twitter […] The above mitigates or at least suppresses the identified risks,” added he.
The Market Sentiment Shift
Cronje’s proposal announcement caused ripples in FTM market sentiment, boosting investor confidence in FTM price as it pumped almost 10% on the day towards the $1 mark.
Photo: CoinMarketCap
The framework functions to nurture more responsible token launch practice, and potentially the opportunity to attract further investors and developers to Fantom.