Meme coins are set to join the Fantom (FTM) network, sparking enthusiasm among the community. In a Medium post, Fantom’s lead developer Andre Cronje discussed the potential risks and benefits of meme coin culture on Fantom, as well as strategies for maximizing opportunities.
Andre Cronje proposal
Andrei Cronje began his pitch by acknowledging potential hazards. These include the possibility of team members or early backers selling off their tokens in large quantities, an action that could negatively impact the project. This phenomenon has been observed with successful meme coins on other blockchains. Moreover, there’s a risk of liquidity being withdrawn and access controls imposed on the token itself.
After addressing potential risks, Cronje suggested precautions for new meme coins to prevent issues connected to Multichain. He pointed out that a tenth of the token’s liquidity could be designated for marketing expenses. These marketing initiatives might encompass listings, airdrops, and promotional campaigns, as detailed in the breakdown provided.
The team member shared that out of every 10 coins proposed for meme projects, they would set aside 10% for team expenses. For accountability and security, these funds will be kept in a multisig wallet. The remaining 85 coins, or roughly 85%, will be placed in a multisig foundation wallet. As previously stated, the protocol’s liquidity will be maintained with a contribution of 100,000 FTM tokens.
Can Fantom handle meme coin surge?
Meme coins like Shiba Inu on Ethereum and BONK on Solana are gaining significance in base-level blockchains. The role of SHIB in Ethereum is similar to that of BONK in Solana. While they can fuel impressive expansion, they also have the potential to cause network overload and slow down the system. This issue plagued Ethereum severely, and Solana is currently experiencing its own network interruptions.
The design of Fantom as a Directed Acyclic Graph (DAG) allows it to manage larger transaction volumes more effectively, reducing the risk of crashes. This capability could make Fantom more suitable for handling the intense traffic of meme coins compared to other similar platforms.
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2024-04-09 11:26