dChef is cooking up a storm. dBlurring soon
The Kitchen
Where the new meme model gets cooked.
What memes are, and what we are doing differently
Memecoins have a unique position in the cryptocurrency ecosystem. They started as a joke, a way to poke fun at projects that took themselves too seriously, but they have become a market phenomenon that embodies internet culture. A piece of internet culture and lore gets tied to a tradable asset, and because of that culture, these coins often go viral when they are executed correctly.
Over 35% of the Gen Z population has a social media addiction. That statistic sounds crazy, but it is very bullish for internet culture and memecoins. There is a major problem with memecoins and with the ecosystem itself. Attracting a social media addicted generation into an ecosystem that embodies their culture, but has a net negative effect on them, is not a good look.
Looking at the crypto ecosystem before 2024, almost every project needed two things: a developer and liquidity.
Now AI is the developer, allowing anyone to create a website, plan marketing, and so on, while launchpads like pump.fun take care of the liquidity. That sounds good, but in reality most memecoins end up dead within minutes from rugs, bad actors, and hundreds of other reasons. It comes down to bad actors and bad value loops.
Most people are in crypto to:
- Make money (70%)
- Have fun (20%)
- Join a community (10%)
But the way things work now:
- Make money (10%)
- Have fun (20%)
- Inevitably join a community because you are left bag holding after a rug (70%)
With those kinds of numbers, attracting Gen Z into the ecosystem based on the culture they curate, only for them to lose their money, is not a good look.
The goal of any cryptocurrency is to build a community around the idea and monetize it through community growth, so that each community member earns a yield of some kind on their initial value contribution. As we know, it does not happen like this.
But it should.
The problem is easily solved if you manage a value loop where the memecoin, or any cryptocurrency, captures a perpetual flow of volume and interest. This cannot be done through marketing alone. It needs to be done through incentives, new assets, and innovation.
Just like trends in Gen Z culture, the trend flips every other day, and so will the interest in any specific coin if a value loop is not created. Without the value loop, no new value is arriving, the meme becomes old and stale, and the community becomes toxic. You end up with a dead coin. The only way the coin performs is through coordinated insider volume that extracts from new buyers as the price increases, or a market maker handling that action specifically.
This does not need to be the ecosystem we live in. There is a much better alternative that creates a perpetual value loop, and that is what dNut Inu intended to be from day one.
dNut Inu was invented with the goal of unifying all memecoin communities. This is done through one specific feature, which is that the supply of dNut Inu is deflationary, as it is tied to the total meme market cap. As that market cap grows, the supply of the token burns. This single feature of the dNut Inu economics captures value across the entire memecoin ecosystem.
Burns do not define value on their own. It requires driving volume all the time, perpetually and indefinitely. Volume comes from fresh eyes and fresh capital.
dNut Inu will achieve this through secondary launches called sub Inus.
How it works
The idea of sub Inus derives from the failed creator coins, where a single developer or artist launches a coin or NFT, and each new launch from that creator ties back to the creator coin. The problem with that is people do not really care about creators or developers. They do care about a good meme.
A coin is launched, or will be launched. By holding that coin, you earn from the mint fees of every sub launch that comes after it. How those fees get split is set for each launch:
- All of the mint fees go to holders of the parent coin
- A percentage goes to holders and the rest goes to buy backs
- All of the mint fees go to buy backs
An example
Satoshi launches a coin called Sats coin. He then launches an NFT collection called Satoshi. People mint the Satoshi NFTs. Those NFTs hold X amount of Sats coin if held over Y period as a yield, which can be redeemed by burning the NFT.
The cost of each mint of the Satoshi NFTs goes directly back into Sats coin on every mint. The mint fees might go directly to the holders of Sats coin, or 50% might go to holders and 50% might go to buy backs.
Either way, the value from the sub launch always arrives back in the hands of the Sats coin holders. Those who hold the NFTs earn a yield in Sats coin, so as more mint fees come in and more sub launches happen, the more that NFT is worth and the more Sats coin grows in value. The perpetual machine is in motion.
This is the general concept of creator coins, but dNut Inu is doing it with a memecoin rather than a creator coin, because research shows nobody really cares for creator coins, but they do care for memecoins.
Two sub Inu projects have been carefully crafted over many months that we believe will achieve what this project set out to do.
The first sub launch
Mint fees from the first sub launch go straight to the presale buyers, up to the total value of the presale. Once that is covered, the rest of the mint fees go to buy backs of dNut Inu when the parent coin launches.
The NFTs from this mint also carry a yield paid in dNut Inu. That yield is 5% of the airdrop reserve, which is 10,000,000 dNut. It comes out of the Airdrop and Farming allocation that is already set aside, so it is not new supply and the token allocation stays exactly as published.
Across the first two sub Inu projects the total is 10% of the airdrop reserve, or 20,000,000 dNut. That balance is replenished over time through buy backs funded by capital from the sub launches.
Note: none of the original tokenomics of the dNut Inu coin has changed. The coin itself will launch as intended, but the value loop back into the coin has changed.