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Meme Cash Are So 2021—It is All About Meme Chains Now

Key Takeaways

  • A number of meme-themed blockchains have hit the crypto area, providing customers some respite from the continued crypto winter. 
  • Dogechain, Berachain, and Kekchain are among the many tasks using widespread memes to advertise themselves.
  • Whereas meme chains are sometimes extremely speculative, some have ambitions to alter the best way blockchains and DeFi perform. 

The most well-liked memes within the crypto area are again—in blockchain type. 

What Are Meme Chains?

It’s turning into simpler than ever to launch your personal blockchain—and the memes are benefiting from it. 

In current weeks a number of new meme-themed blockchains have hit the crypto area, providing customers some lighthearted enjoyable and a quick respite from the enduring crypto winter. 

Till now, most crypto meme tasks took the type of a token on a pre-existing Layer 1 chain. For instance, Shiba Inu launched as an ERC-20 token on Ethereum, and Solana bought its personal canine token within the type of Samoyedcoin. The primary exception to this pattern has been the crypto meme progenitor, Dogecoin, which was initially created as a fork of Litecoin and lives by itself chain. 

Nevertheless, regardless of their success in going viral, these meme tasks have confronted important hurdles. Throughout its peak, Shiba Inu mania helped the fuel charges on Ethereum soar, dissuading new patrons and limiting the meme’s potential. Dogecoin, which speculators largely purchased by centralized exchanges, was less expensive to acquire however restricted by its lack of Turing completeness, that means it can not help good contracts or DeFi functions. 

The brand new wave of meme chains capitalizes on two issues: good contract interoperability and all-time low charges. After paying a small payment to bridge tokens to a meme chain, customers are unrestricted in what they will construct or do. Low transaction charges encourage use, and extra customers carry extra builders. 

In current weeks, a number of up-and-coming meme-themed blockchains have captured the crypto market’s consideration and generated pleasure at the same time as costs pattern down throughout the board. 

Dogechain 

Dogechain is a meme chain that’s bringing good contracts to Dogecoin. Marketed as a “Layer 2 for Dogecoin,” Dogechain is constructed utilizing the Polygon Edge framework. Whereas Dogechain is Ethereum-compatible, it doesn’t use ETH for its transaction charges. As a substitute, customers will pay charges with both wrapped Dogecoin (wDOGE) or the chain’s native Dogechain token (DC). 

The staff behind Dogechain is nameless and reportedly has no connection to Jackson Palmer, Dogecoin’s authentic creator who has since distanced himself from the crypto area. On the Dogechain web site, the meme chain is marketed with the tagline “NFTs, Video games, and DeFi for Dogecoin customers,” alluding to all the probabilities Dogechain’s good contract performance allows. 

Presently, a lot of the exercise on Dogechain comes within the type of wild token hypothesis that’s turned the community right into a makeshift on line casino. As a result of low cost transaction charges and low barrier to entry, it’s simple to create new tokens with meme-worthy names, and even simpler to purchase them. Low ranges of liquidity imply new tokens can shortly go parabolic, netting early patrons large returns on even a modest “funding.” Nevertheless, for each winner, there’s a whole graveyard of tokens that didn’t make it, lots of them sitting 99% down from their all-time highs. 

Though most exercise on Dogechain is glorified playing, adoption seems to be rising. In accordance with the official Dogechain Twitter account, the community surpassed 15 million transactions on September 5 and hit an all-time excessive every day transaction rely of two.6 million the next day. Moreover, there are additionally hints of extra severe tasks getting concerned with Dogechain. Stablecoin protocol Frax Finance lately launched a decentralized alternate on the meme chain, and the Dogechain staff formally endorsed it because it went dwell. 

As a meme, Doge has a protracted historical past relationship again over a decade and has turn out to be a mainstay of Web tradition. Dogecoin’s parabolic run in 2021 exhibits the explosive potential of meme cash given the precise situations. If curiosity in crypto picks up once more, Dogecoin and Dogechain might seize plenty of consideration from newer entrants and crypto veterans alike. 

Berachain

Berachain pays homage to the continued crypto bear market and the idea of “bearposting.” It makes use of picture derivatives of Bobo the Bear to carry its group collectively, very like Dogechain makes use of the Doge meme. Nevertheless, whereas Berachain might appear to be one other lighthearted meme on the floor, the challenge is pioneering a number of improvements that might change the best way blockchains and DeFi perform. 

Berachain differentiates itself from different meme chains by promising to carry new ranges of capital effectivity to DeFi. The challenge plans to take action by a brand new tri-token design and a “Proof of Liquidity” idea. The three tokens within the Berachain ecosystem are a fuel token referred to as BERA, the BGT governance token, and a collateralized stablecoin referred to as HONEY. 

In accordance with the Berachain staff, the rationale behind having separate tokens is the assumption {that a} decentralized financial system has three essential elements which can be essential to its success: a medium to cost a unit of labor (fuel), a medium to return to consensus and make choices about the way forward for the community (governance token), and a medium during which in to transact by a standard secure denomination (stablecoin). Most present networks mix these features underneath the identical tokens, however Berachain needs to separate every one. 

By making every element separate, Berachain can implement its novel Proof of Liquidity Sybil resistance mechanism. Right here, tokens used to assist the community come to consensus are repurposed to supply liquidity all through the Berachain ecosystem whereas incomes a yield from block rewards and protocol charges. If the plan works, Berachain might set a brand new normal for capital effectivity and blockchain design. 

Berachain continues to be within the early phases of growth however plans to launch its first incentivized testnet quickly. Though the chain is being constructed utilizing the Cosmos software program developer equipment and makes use of the Tendermint consensus mechanism, its builders are promising it is going to be Ethereum-compatible and have full cross-chain interoperability. 

Separate from its tokenomic improvements, Berachain has garnered plenty of consideration in crypto circles. The challenge’s Discord server has attracted over 60,000 members, with many aiming to make it onto Berachain’s unique “Honeylist.” Not a lot is thought about what a spot on the Honeylist grants or what hopefuls can do to get on it, however some have speculated that it’s going to grant early entry to the Berachain testnet or different advantages. 

Kekchain 

Final up is Kekchain—a meme chain devoted to the satirical faith primarily based across the worship of the traditional Egyptian frog God Kek. The meme was first conjured up on the imageboards of 4chan, the place posters famous a similarity between Kek and the favored meme character Pepe the Frog created by Matt Furie. 

Kekchain harnesses the meme energy of Pepe and its derivatives, resembling Peepo and Apu Apustaja. Discovering viral success as early as 2008, Pepe rivals Doge in its widespread recognition throughout the Web. Nevertheless, the meme’s adoption by some far-right circles has harm its status lately. 

Like Berachain, Kekchain can be in its pre-launch section however has launched its native KEK token as an ERC-20 on Ethereum. Moreover, the challenge has additionally launched its personal .kek area identify service akin to Ethereum Identify Service’s .eth domains. When the Kekchain mainnet launches later this 12 months, its builders plan emigrate KEK over from Ethereum so it may be used to pay transaction charges. Kekchain is at the moment working a testnet the place customers can check out the chain and begin constructing functions. 

Regardless of its small following, Kekchain has made good progress selling itself. To this point, the KEK token has been listed on Coingecko, and ChainList has additionally added the Kekchain testnet to its roster of RPC server addresses. 

Nevertheless, the KEK token contract expenses a controversial 10% exit tax for promoting KEK on the open market. Kekchain’s builders keep the tax is critical to assist develop and market the chain. Nonetheless, taking a reduce of merchants’ tokens might be a nasty shock for some and harm the community’s total adoption. 

Remaining Ideas

Though meme cash—and now meme chains—have produced good-looking returns for early patrons, the dangers related to a lot of these tasks are excessive. Meme tasks can sometimes soar in worth, however they will simply as shortly plummet, leaving those that purchased on the prime holding the bag. Moreover, many meme tasks are created by nameless groups, that means that it is vitally troublesome to carry anybody accountable for them. This will increase the danger of tasks “pulling the rug” on token holders by stealing funds, dumping tokens, or abandoning the challenge. Anybody considering of exploring any meme chains or tasks discovered of their ecosystems ought to do their very own analysis and perceive the dangers concerned.

Disclosure: On the time of scripting this piece, the writer owned ETH and a number of other different cryptocurrencies. The data contained on this article is for instructional functions solely and shouldn’t be thought-about funding recommendation. 

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