The newly introduced Polkadot-based memecoin, DOT is $DED (DED), has sparked significant controversy within its community following a drastic reduction in its airdrop allocation.
Originally set to distribute 100% of its token supply, the allocation was unexpectedly cut to just 5%, leaving many in the community displeased.
Strategic Shift or Misstep?
Giotto De Filippi, a pseudonymous developer behind DED, rationalized the decision in a March 24 X Spaces, stating the need for a sustainable financial runway and citing the community’s reluctance to fund the project as key reasons for the reduction.
Why 5% percent and not 100%?
Watch this: https://t.co/flwQY8N9xF
— Giotto De Filippi (@giottodf) March 24, 2024
This move aimed to reserve the bulk of tokens for future financing needs.
Growing Pains and Community Reaction
The announcement came as a shock to many, especially given the memecoin’s rapid ascent in popularity on social media platforms like X, where it quickly became a topic of discussion among the Polkadot community.
The initial excitement for the memecoin, which promised Polkadot holders 36 DED tokens for every DOT held, turned into frustration as details of the allocation cut emerged.
Orlando, a pseudonymous crypto investor, expressed his disappointment on X, highlighting the financial implications for those who bought DOT in anticipation of the DED airdrop.
Polkadot ⭕️
I wasn't going to comment on this because emotions are running high on social platforms, but I want to share my thoughts.
Like everyone else, I'm disappointed with how the DED situation unfolded. The treasury spent money, and many people recently bought and held… pic.twitter.com/vWaQMyYu04
— Orlando (@OrlandoG85) March 23, 2024
His sentiment reflects a broader discontent within the community, many of whom feel let down by the sudden shift in strategy.
Airdrop Claim and Token Freeze
Despite the controversy, over 85% of the DED airdrop supply has been claimed by more than 1.3 million eligible addresses, according to Dune data.
In an attempt to mitigate potential sell pressure, the team has decided to freeze the airdropped supply until the token is listed on exchanges.
The Broader Memecoin Phenomenon
DED’s launch comes amid a broader surge in memecoin interest, with tokens like Book of Meme (BOME) experiencing substantial price rallies.
This memecoin craze has seen various blockchain networks, including Solana and Avalanche, launching their own tokens and liquidity mining programs to attract retail interest.
As the DED team navigates through the community’s backlash, the incident underscores the volatile nature of memecoin ventures and the critical importance of clear communication and community trust.
The unfolding scenario also highlights the ongoing fascination with memecoins across the cryptocurrency landscape, despite the risks and controversies they often bring.
