The Arbitrum community is considering a proposal to establish a $3 million memecoin fund separate from the Arbitrum DAO. The goal of the fund is to nurture memecoin projects and foster a memecoin-friendly environment within the Arbitrum ecosystem. This initiative aims to attract new users and generate interest in the blockchain similar to the success of memecoins on Solana.
The proposal which was authored by user 0xkawz suggests a five-member board overseeing the fund with separate collaborators managing day-to-day operations. The fund would prioritize memecoins with fair launches, secure contracts, a large holder base, minimal whale influence, and sufficient liquidity. Investments would range from $50,000 to $150,000 per project and the fund would also offer graphic design and video editing support.
Key aspects of the proposal include stringent evaluation criteria for Memecoin projects. These criteria encompass factors such as liquidity levels exceeding $200,000 minimal whale ownership and a market capitalization surpassing $1 million. Additionally, selected projects must demonstrate a commitment to long-term sustainability and adherence to transparent and secure practices.
The proposed fund structure entails the appointment of five board members and three collaborators responsible for overseeing day-to-day operations. To ensure transparency and integrity a 5/9 multi-signature system will govern fund management with strict prohibitions against collaborators and board members investing in supported tokens.
Proponents of the initiative believe it will revitalize the Arbitrum ecosystem by drawing new users and fostering DeFi activity. They point to stagnant daily active users (DAUs) on Arbitrum despite holding the highest total value locked (TVL) among Layer 2 solutions. However, some community members expressed skepticism viewing the proposal as an attempt to prop up failing memecoins.
In terms of funding, the proposed budget allocates $3,315,000 worth of ARB tokens to cover operational expenses and initial investments. Additionally, provisions are made for potential future grants totaling $1-2 million aimed at integrating Memecoin projects into Arbitrum’s DeFi ecosystem.
The proposal is still under discussion and the Arbitrum DAO will ultimately decide on its implementation following a propagation period of at least six months. If approved the fund’s success will be evaluated after this period with the DAO holding the power to increase funding or dissolve the initiative entirely.
Data from CryptoRank shows that meme coins have established a unique space at the crossroads of digital culture and investing. As these tokens gained traction in 2024, discussions swirled around two major blockchains namely Solana and Ethereum. Ethereum is home to the behemoth Shiba Inu (SHIB) boasting a market cap of a whopping $16.2 billion.
