Fantom (FTM) will soon support meme currencies, and the community is thrilled about this. Fantom lead developer Andre Cronje described the potential hazards and benefits of the meme coin culture on the platform in a proposal that was posted on Medium. He also provided advice on how the community may effectively capitalise on this culture.
Andre Cronje proposal
In the opening paragraph of his proposal, Andre Cronje listed the hazards, which included the possibility that the team would sell off their tokens and that early investors would sell in bulk—a move that might seriously harm the business. There is also the possibility that liquidity could be eliminated and that the token itself will have access controls, as demonstrated by other blockchains where meme currencies are already flourishing.
After addressing the dangers, Cronje suggested certain precautions for any planned meme coins to prevent problems arising from Multichain. He mentioned that 10% of the token’s available supply may be set aside for advertising. According to the breakdown he provided, these marketing activities may be associated with listings, airdrops, and adverts.
10% of the suggested meme coins, according to him, may be set aside for team-related costs. He stated that this has to be secured in a multisig wallet to avoid any kind of undue manipulation and to guarantee trust and transparency. As promised, the protocol will be backed with 100,000 FTM to balance the liquidity, and the rest 85% may be locked in a foundation multisig.
Can Fantom handle meme coin surge?
Memes are quickly taking front stage in layer-1 blockchain architectures. BONK is to Solana (SOL) what Shiba Inu (SHIB) is to Ethereum (ETH). They may contribute to rapid expansion, but they may also cause congestion, which slows down a network. This turned into a threat to Ethereum, and at the present, Solana is experiencing its own share of network failures.
Fantom is optimised to handle higher transaction volumes without crashing thanks to its Directed Acyclic Graph (DAG) design. This might make it more capable than its competitors in handling the meme coin traffic.
