Memecoin × DeFi × DAO

The current Memecoin sector is plagued by chaos, with the term "Build" even taking on a derogatory connotation. Certain so-called "Builder" groups are continuously exploiting retail investors through various means, while retail investors themselves are also preying on each other, turning the market into a slaughterhouse. This situation makes the development of Memecoin unsustainable, with negative sentiment in the community running high and spreading to other areas of Web3, causing many to lose faith in the industry and choose to exit, severely damaging the healthy development of the Web3 ecosystem.

Without exaggeration, if it weren’t for the lack of regulation and the difficulty in enforcement in Web3, many would have already been imprisoned for this. The existing Memecoin infrastructure focuses solely on short-term profits, neglecting the long-term sustainable development of the industry, and even providing convenience for certain conspiratorial groups. The destructive blows these conspiratorial groups inflict on the Memecoin sector, along with the distortion of community members’ minds, urgently compel us to tear apart the haze shrouding the industry through disruptive innovation—this is precisely the embodiment of the Out and Run spirit.

Memeverse came into being, dedicated to the sustainable development of the Memecoin field. But how can we achieve this sustainability? Let us conduct a thought experiment.

First, sustainable development must be democratic and decentralized. Only in this way can we avoid repeating past mistakes. Therefore, in the Memeverse universe, there is no concept of a so-called “Creator.” The identity of the person who issues the Memecoin is irrelevant, because the so-called “Creator” merely clicks a mouse yet can exploit the community through front-running or “Creator” income, which is both unreasonable and illegal. Memecoin should rightfully belong to the entire community.

Based on the foregoing reasoning, it’s easy to think of one of Web3’s great inventions—DAO governance. In my view, DAO governance is the most groundbreaking innovation in Web3, yet it has not truly gained widespread adoption. The participation rates in existing major DAOs are generally low. However, the Memecoin sector, as the most community-driven and emotionally charged ecosystem, boasts the most active user base. After all, what Memecoin player would fail to join their community? In contrast, in other areas of Web3, a large number of users are solely focused on speculating on coins, knowing nothing about community affairs and remaining indifferent. Therefore, the integration of Memecoin communities with DAO governance is a perfect match, potentially even amplifying the adoption of DAO governance and enhancing the influence of the Web3 industry.

So, how should the governance token be chosen? Should we directly use Memecoin? Although using Memecoin as the DAO governance token is simpler, sustainable development relies on the long-term support of community members, not short-term speculators. Therefore, governance rights should be allocated to those willing to stand with the community through thick and thin. To this end, Memecoin Staking emerges: by staking Memecoin to mint Staked Memecoin as the DAO governance token, Builders who focus on long-term value can take the lead in steering the Memecoin DAO.

With Memecoin Staking in place, how do we incentivize users to participate in staking? The answer is profit-driven motivation. Human behavior stems from desire, and at its core, desire is the pursuit of self-interest. While long-term building can fulfill Builders’ aspirations for self-realization, most people are more in need of immediate returns. To this end, we channel the memecoin portion of the transaction fee revenue, derived from genesis liquidity, into the Memecoin Yield Vault. The trading activities of speculators generate continuous profits for stakers, thereby sparking their enthusiasm for governance participation. In contrast, transaction fee revenue in other protocols is often underutilized or taken by “Creators.”

On the other hand, existing Memecoin communities suffer from extremely poor execution, often failing due to endless disputes and chaos, or, to put it another way, most communities are merely chat groups incapable of accomplishing anything substantial—existing in name only, without substance. The root cause is the lack of tangible incentives to motivate members to contribute to building. After all, “working for passion” is a rarity, whereas realizing long-term value requires sustained profit support. Therefore, we channel the UPT portion of the transaction fee revenue into the Memecoin DAO Treasury. As a result, users staking Memecoin not only receive native staking rewards but also gain the ability to govern the use of the DAO treasury funds. This provides the community with both continuous financial support and boundless potential for evolution.

Finally, sustainable development requires not only a community built for the long term but also a sufficiently robust community. To this end, we have introduced a omni-chain architecture for Memeverse, supported by LayerZero, enabling users to perform operations such as registration, genesis, trading, staking, and governance across multiple arbitrary blockchains. This helps the community reach more potential users and access greater liquidity, which is crucial for the dissemination of Memecoin and the development of the community.