Blockchain developer Andre Cronje shared insights on how to create a safer meme coin and community by implementing transparent tokenomics to reduce risks associated with projects on the Fantom network.

In a recent blog post, Cronje highlighted common concerns with meme coins, including team members selling tokens, early investors dumping large amounts, developers withdrawing funds, and creators retaining control after launch.

These issues have been observed in numerous meme tokens launched recently, leading to scams and cash grabs. In many cases, early investors from pre-sale rounds caused market prices to plummet post-launch, or developers dumped tokens on unsuspecting users.

Andre Cronje’s Solution for Meme Coins

Co-Founder of Fantom Foundation, Andre Cronje, suggested allocating up to 10% of the token supply for marketing purposes, such as airdrops, exchange listings, influencer deals, and social media promotions. This amount would be secured in a multi-signatory address requiring three approvals.

Cronje proposed that a multi-sig wallet holding 5% of the token supply could fund operational expenses for the meme coin team. The remaining 85% of tokens would be allocated to a liquidity pool paired with Fantom’s native cryptocurrency (FTM).

An initial 100,000 FTM would be provided to any Fantom-based automated market maker chosen by the meme coin community. Cronje also suggested removing and burning excess liquidity if the LP’s FTM holdings exceeded two million.

Cronje emphasized that the meme coin should not have minting or ownership functions and offered to oversee the project’s launch on Fantom.

“The token does not allow purchases or sales greater than 1% of the nominated LP pool in a single transaction. This will prevent initial launch manipulation and large dumps by early participants, without affecting other liquidity pools.”

– Andre Cronje, Fantom Foundation Co-founder

Considering the controversies surrounding meme coins on Ethereum and Solana, Cronje stated that he would not support offensive projects or those referencing real individuals.

For more insights on the cryptocurrency market, stay tuned to Global Crypto News.

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