To foster a safer environment within the flourishing $50 billion memecoin sector, Fantom Foundation, a leading layer-1 blockchain network, has unveiled plans to allocate a substantial $6.5 million prize pool in its native FTM token.
This initiative, spearheaded by CEO Michael Kong, aims to incentivize developers who adhere to a set of both technical and non-technical standards designed to mitigate scams and rug pulls.
With platforms like Solana and Ethereum layer-2 Base dominating recent memecoin trading frenzies, Fantom aims to attract memecoin traders to its network. Kong’s announcement of a 10 million FTM prize pool, equivalent to $6.5 million, during the MemeGlobal event in Sydney on April 30th underscores this strategy.
Kong sees the memecoin phenomenon as an opportunity to acquire more customers and replicate the success observed on other chains.
Kong stresses Fantom’s commitment to meeting customer demands, whether in DeFi, NFTs, or memecoins, by providing a secure development environment aligned with user preferences. Central to this approach is ensuring democratic token distribution to avoid disproportionate holdings among a select few.
The Foundation’s co-founder, Andre Cronje, has previously proposed several safety measures for memecoins, including the Fantom Foundation acting as a co-controller of the token’s initial liquidity.
Cronje also advocates for a token supply split, with 5% allocated to the team, 10% for marketing, securely locked in a multi-signature wallet requiring Foundation member approval, and the remaining 85% placed in an FTM paired liquidity pool, with the Foundation contributing 100,000 FTM.
