Polkadot Memecoin DED Airdrop Reduction Sparks Community Outrage

The Polkadot-focused memecoin DED's airdrop allocation was unexpectedly reduced from 100% to 5%, eliciting criticism from the community. The move aims to sustain the memecoin's financial runway and avoid exhausting its supply. Over 85% of the airdrop has been claimed, but its supply remains locked until exchange listings to mitigate sell pressure. The launch aligns with the ongoing surge in retail interest in memecoins, exemplified by the recent rise of BOME and Avalanche's liquidity mining program for memecoins.

Polkadot-Centric Memecoin DED Airdrop Reduction Sparks Controversy

The airdrop of the novel Polkadot-focused memecoin, DOT is $DED (DED), has drawn swift criticism from the community following a significant reduction in the initial allocation.

Reduced Airdrop Allocation

The initial airdrop allocation was slashed from 100% of the token supply to a mere 5% of the current supply, purportedly to foster a more extended cash runway for the memecoin, as explained by Giotto De Filippi, a pseudonymous developer associated with the project, in a March 24 interview with X Areas:

"When you distribute 100%, you run out of ammunition... Given that the voters had not been able to fund the project, it makes more sense to distribute significantly less so that the remainder of the tokens can be used to support the project."

Initial Surge and Subsequent Discontent

DED initially gained traction on the cryptocurrency exchange XT on March 23, after enthusiasts within the Polkadot community initiated the memecoin to capitalize on the memecoin craze and generate awareness for the Polkadot ecosystem. Holders of Polkadot (DOT) were eligible to receive 36 DED tokens for each 1 DOT they held.

However, sentiment among investors turned sour after the project team diminished the original airdrop allocation. Pseudonymous crypto investor Orlando expressed his concerns in a March 23 post on XT:

"Like everyone else, I am disappointed with how the DED issue was handled. The treasury raised funds, and most people who bought and held DOT recently did so because of the hype surrounding this supposed DED memecoin. I hope the team can find ways to compensate holders for these mistakes in the long term."

Current Status and Future Outlook

Over 85% of the current DED airdrop supply has been claimed, representing more than 1.3 million eligible addresses, according to Dune Analytics data. Unlike other prominent memecoins, DED's airdropped supply has been locked until upcoming exchange listings to mitigate selling pressure.

Memecoin Frenzy

The launch of the Polkadot-based token coincides with a period of heightened retail interest in memecoins. In the past week, the meme token Book of Memes (BOME) experienced a surge of over 1,100% on the weekly chart, briefly becoming the 130th largest token by market capitalization.

BOME is part of a wave of emerging memecoins that have raised funds for their yet-to-be-released tokens through a controversial presale model. Presales for these Solana-based memecoins raised over $100 million worth of SOL in the three days leading up to March 18.

Other blockchain networks are also attempting to capitalize on the memecoin frenzy. On March 21, the Avalanche Foundation announced a $1 million liquidity mining incentive program for Avalanche-native memecoins and community-owned tokens.