For an outsider looking at the crypto space, it can be puzzling to watch meme coins like Dogecoin climb up to a multi-billion dollar market cap with zero utility. At one point, the valuations of meme coins were even higher than mainstream companies like BMW and FedEx. Makes no sense at all, right? It doesn’t, if you’re looking at meme coins through the same lens as other cryptocurrencies.
Most crypto tokens fuel protocols that represent innovative use-cases with possible transformative impact on the traditional financial system — but that’s not what meme coins are attempting to achieve. Instead, the growing appeal for meme coins like Dogecoin and Shiba Inu is community. A community supported by some of the most influential entrepreneurs in the world, like Elon Musk and Mark Cuban.
But what good is a community if it’s purely driven by virality? If meme coins really do represent a shift in culture and community-led growth in the crypto ecosystem, then they should not get outdated so quickly. To take meme coins like Dogecoin to the next level, we need a new platform for seamless integration into DeFi and dApps.
And currently, the one aiming to achieve just that is Dogechain. This article explores the upside of Dogechain, and how Dogecoin — and possibly other meme coins — can build a proper ecosystem on top of it.
Dogechain — Savior of Dogecoin?
While Dogecoin never had any fundamental economic substance or usage, it did gain immense popularity as a payment option. But that’s about it. We see companies such as Tesla, AMC Entertainment, and Newegg accept Dogecoin for payments and actively support the community. The problem here, though, is that user adoption has flat-lined. If payments are the only thing possible with Dogecoin, then it will soon not be sustainable.
This is where Dogechain comes into play. By building smart contracts, Dogechain is expanding the scope of Dogecoin in the vast crypto landscape. Until now, it wasn’t possible to use Dogecoin in blockchain gaming and NFTs. It further fails to present yield-generating opportunities.
Dogechain will flip that dynamic, however, by creating a standalone blockchain with smart contracts functionality using Polygon’s new Edge Framework. That, too, without making any security trade-offs. The new blockchain will also improve transaction speed and the degree of decentralization for Dogecoin.
Moreover, Dogechain addresses the environmental issues of the PoW Dogecoin blockchain, ensuring that it will no longer consume energy equivalent to that of a small country, and will become a greener alternative that is essential for a sustainable future.
So, from now on, the community no longer has to speculate whether something big is coming for Dogecoin. It has now arrived with Dogechain. The possibilities are truly endless for how Dogecoin can be integrated into so many blockchain verticals and be an immediate difference maker.
What Makes Dogechain Unique
Dogechain stands apart from other blockchains representing meme coins by enhancing the level of Ethereum compatibility, introducing governance mechanisms, and establishing cross-chain bridges. Thanks to the modular nature of the Polygon Edge Framework, Dogechain can develop these characteristics with ease.
Building on Polygon Edge also makes Dogechain developer-friendly. The cross-chain operations are simplified and easy to access. You can effortlessly make asset transfers — including NFTs and wrapped currencies — from any EVM-compatible network to Dogechain. In addition, developers can create custom features with Polygon plugins, rather than having to opt for the forking method. For example, you can replace the core functionalities of the consensus mechanism using developer plugins.
For communication with the original blockchain of Dogecoin, Dogechain is using the cross-chain bridge model while also introducing two new tokens: $wDOGE and $DC. If you want to access Dogechain, you will first need to swap $DOGE tokens with $wDOGE in a 1:1 ratio. Technically, the same can be built for other meme coins by building different cross-chain bridges.
While $wDOGE can be utilized for cross-chain activities, $DC handles the governance aspect of Dogechain, at least in the initial stages. $DC tokens also form the yield system of Dogechain. Based on Curve’s vote-escrow mechanism, Dogechain is creating high yield generating opportunities for long-term stakers. Using $veDC, token holders can generate up to 400% returns in four years.
As far as smart contracts go, Dogechain has close to everything, from governance and staking to slashing and bridging, Dogechain has six different purpose-built smart contracts. In the case of governance, smart contracts handle on-chain management for voting and selecting validators. There is also a vault smart contract for storing withdrawal fees received from chain bridges.
Applications Made Possible with Dogechain
There are three main applications that are enabled by Dogechain: NFTs, DeFi, and GameFi.
NFTs can be launched on Dogechain using the ERC721 protocol. As popular marketplaces like OpenSea accept the token standard, it will become easier for new NFT creators on Dogechain to integrate themselves into the NFT community.
While newly-launched NFTs can take time to gain traction, DeFi protocols with good token rewards can quickly capture market share. Dogechain plans to do the same by integrating decentralized exchanges and lending platforms. With liquidity pools on Uniswap and Sushiswap, token holders can earn decent money in passive rewards. Further, they can even use the same capital as collateral to explore more investment opportunities.
And then at last, we have GameFi. There will be two use-cases for Dogechain in the GameFi industry: for one, the smart contract framework allows developers to build scalable blockchain games and virtual worlds. And two, $wDOGE and $DC tokens can be used for fueling in-game economies and NFT marketplaces.
Through Dogechain, Dogecoin can truly become what it was meant to be, the people’s money, providing the Doge community access to a whole universe of decentralized applications.
The community no longer has to participate in other ecosystems to experience the brave new world of DeFi, NFTs & P2E gaming, instead that brave new world has come to Doge.
What Polygon is to Ethereum, Dogechain Can Be to Meme Coins
Polygon was able to become so successful because it empowered Web3 builders and users to access and build on a network like Ethereum with low entry barriers. It ultimately evolved into an ecosystem for creating new dApps that can fully benefit from Ethereum’s network effects.
Similarly, Dogechain can benefit from the community of Dogecoin and take it a step further with added utility. With smart contracts and governance, Dogechain can also evolve into an ecosystem for meme coins and maintain its relevance based on utility, not hype.
Looking ahead, Dogechain will likely be the go-to platform for new meme coins to emerge with greater utility. And the Doge community will be at helm steering projects in the right direction of innovation.
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