Meme coins are coming to Fantom (FTM), and the community is excited at the prospect. In a proposal published on Medium, Fantom lead developer Andre Cronje outlined the risks and opportunities that a meme coin culture on Fantom poses and how the community can properly tap into the latter.
Andre Cronje proposal
Andre Cronje started his proposal by highlighting the risks, which include the likelihood of the team selling off their tokens, and early investors selling large amounts, a trend that can cripple the project. As seen on other blockchains with meme coins already thriving, there is also the risk of liquidity being removed and the token itself having access controls.
With the risks out of the way, Cronje proposed some safeguards for any intended meme coins to avoid Multichain-related mishaps. He noted that 10% of the token’s liquidity can be earmarked for marketing purposes. These marketing affairs could be related to listings, airdrops and advertisements, per the breakdown he highlighted.
He said that 10% of the proposed meme coins can be allocated for team-related expenses. To ensure trust and transparency, he said this has to be locked up in a multisig wallet to prevent any form of undue manipulation. The remaining 85% can be locked in a foundation multisig and, per his promise, the protocol will be supported with 100,000 FTM to balance out the liquidity.
Can Fantom handle meme coin surge?
Meme coins are fast becoming an important part of layer-1 blockchains. As Shiba Inu (SHIB) is to Ethereum (ETH), so is BONK to Solana (SOL). While they can help trigger massive growth, so too can they trigger congestion that can slow a network down. This became a menace to Ethereum, and Solana is facing its share of network outages at the moment.
Fantom’s design as a Directed Acyclic Graph (DAG) primes it to handle larger transaction volumes without crashing. This might help it handle the meme coin traffic better than its peers.