Memecoins have become an unpredictable staple in crypto markets since Dogecoin broke out in 2021. These community-driven tokens combine humour and speculation in a way that often achieves viral popularity. The latest, $DED, seeks to leverage the active Polkadot ecosystem for its own grassroots rise.
Bonk, a recent memecoin launched on Solana, demonstrated that the model still has room for growth today. Its listing on Coinbase preceded an 18,000% price surge, even if just temporary. Now, based on the recent trending wave on X, a memecoin looks like it has its sights set on bringing that magic to Polkadot.
Why Does The Community Want A Memecoin?
A group of Polkadot enthusiasts and $DOT holders are working to drive further adoption and participation through a new lighthearted memecoin. The project appears grassroots and community-driven, as seen in the high level of activity and growth in their public Telegram chat (https://t.me/dedbird).There’s no pre-sale or venture capital involvement – instead, the team are airdropping the tokens and forgoing any personal allocation or profit, which demonstrates a larger focus on distribution.
Additionally the token is planned to be distributed using a linear fair distribution model, highlighting the team’s commitment to the DOT community and their rejection of unfair advantages or any form of manipulation. This also creates an environment that favours long-term holding in $DED through producing a vested interest in the token, and upwards force.
This approach aligns with research showing community-led memecoins often outperform those that seem more cynically profit-driven. The leaders tend to be anonymous and let the memes and community speak for themselves.
Irreverent humour is also core to memecoins – they often parody and poke fun at themselves while simultaneously allowing speculation and conveying digital ownership.
It is easy to dismiss memecoins as superficial jokes, but they can also drive adoption: Dogecoin’s community donated $25 million to help pay for the Jamaican Olympic team’s trip to the 2022 Winter Games. And, of course, traders enjoy their volatility and speculative potential regardless.
A Memecoin Coming To Polkadot
Unique memes helped propel Dogecoin from obscurity to fame. This new Polkadot token will attempt to do the same while celebrating the ecosystem’s user base. If it achieves community ownership organically, taps the chain’s audience, and inspires inside jokes that take off, it may surprise the crypto community.
This memecoin seems set to leverage interest in Polkadot specifically. Distribution also includes free airdrops, which will benefit widespread adoption.
Memecoin season is moving to DOT
Don’t say I didn’t tell you 🤫 https://t.co/qjmSLueXXp pic.twitter.com/pU65fHC8MW
— dubzy (@dubzyxbt) December 21, 2023
Fair Distribution: What Makes The Model Stand Out?
Fair distribution refers to the equitable distribution of tokens among the community. It aims to ensure that the initial allocation of tokens is carried out in a manner that is transparent, inclusive, and avoids concentration of wealth or power in the hands of a few individuals or entities. By distributing tokens fairly, projects aim to encourage widespread participation, long-term community support, and a more decentralized ownership structure.
Due to the fair linear distribution model resulting in the lowest token concentration per portfolio (for example, $DOT holders receiving a fixed percentage allocation of $DED proportional to their holdings), this leads to an environment where selling is discouraged.
In addition, the team has opted not to hold a pre-sale or dedicate an allocation of tokens to themselves. This, coupled with the fair distribution approach, all leads to an elevated upward pressure through the avoidance of excess concentration, creating even more stability for the token, and maintains the integrity of the linear distribution model.
Launching the Next Big Memecoin?
Past performance obviously provides no guarantees, making research and due diligence a must, especially for highly speculative crypto assets like memecoins. But this team’s tried-and-true approach avoids many pitfalls of other projects: no VC backing, whales, or executives pulling the strings behind the scenes.
Time will tell if that community-first style and Polkadot buzz provides a perfect storm. But an organic rise could make it more than just another memecoin cash grab, and on that front, we will be monitoring the situation.
