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Memecoin Mania: Are we in a bear market?
The Tally Newsletter, Issue 94
Welcome back to the Tally Newsletter, your weekly source for insights on DeFi and DAO governance. We're dedicated to keeping you in the loop on pivotal proposals, procedural transformations, newly implemented voting mechanisms, and evolving power structures within the Tally ecosystem. Plus, we'll curate a selection of must-read articles and must-listen podcasts each week to ensure you remain a well-informed citizen of web3.
I'm coolhorsegirl, a DeFi native thrilled to deliver the latest updates to you every week. With prior experience with Index Coop and a diverse range of DeFi projects, I have a keen interest in DAO governance and cutting-edge DeFi innovations focused on promoting decentralization to its fullest potential.
This week, we’re talking MEMECOINS. If you missed out on DOGE about 2 years ago now, you’ve got another chance to go all-in on a memecoin that shows some promise. And it may indicate more than just some passing hopium (cough, 🐻, cough). We’ll also run through a few proposals, like some straight-from-Snapshot proposals from Gitcoin and the usual Nounish stuff. Did you know 15-25 proposals are submitted every other week for a Nouns grant? Meme lovers, meme advocates, and meme apologists—let’s dive in.
🤿 Deep Dive: Memecoin Mania: Are we in a bear market?
Memecoins have come and meme coins have gone. Last bear market, I remember getting on the $DOGE train before I could even pronounce it correctly (I was saying “dodge”) and not getting off until it was too late. While that memory may haunt me, it seems the rest of Crypto Twitter is all too happy to ride the coattails of these volatile coins now in the form of $PEPE, $GENSLR, $WOJAK, and $RUG.
The numbers are crazy. Someone even turned $250 into over $1m (liquidity issues mean it’ll be tough to sell, though, lol). Does this mean we’re in a bear market again??!
Branded as the memecoin “here to make memecoins great again,” $PEPE boasts some impressive numbers:
24-hour trading volume: $40.831M
Market Cap: $125.349M
Current price is 436.78% higher than the all-time low of $0.000000055142, recorded on April 18 (only one week ago!)
All-time high was recorded on April 20, only 2 days apart from the all-time low
Quickly, let’s talk typical memecoin life cycle: A meme coin drops. It blows up within the first few days or weeks of existence. (The strength of meme coins lies in their community and hype-y narrative.) With no governance (meme coin founders, consider Tally) and little to no utility, the price crashes drastically. If a memecoin breaks out of this cycle (as $DOGE did in mid-2021), it’s a good signal we’re in a bear market.
So where is PEPE in this memecoin life cycle? In other words, is this the top or the bottom? Well, short answer is we don’t know. It doesn’t take much analysis, though, to map PEPE onto other memecoins like DOGE. DOGE hit its peak about 5 months after its initial 1% climb, a clear departure from the pump-and-dump timeline of most memecoins. Aside from that, DOGE has been around since 2013, actually. Like PEPE, though, DOGE also hit its all-time high 2 days after its all-time low. Besides that coincidence(?), PEPE seems to be moving much faster than DOGE in the memecoin life cycle.
End of the day, it doesn’t ~look~ like we’re in a bear market just yet. We’ll just have to see $PEPE through, some hopium required. (And don’t blame me if I put in 100 bucks 😩)
⌛️ On-chain Proposals
On-chain DAOs are decentralized autonomous organizations that operate entirely on the blockchain, using smart contracts and other blockchain-based technologies for its operations and decision-making processes. Tally believes that true DAOs operate on-chain.
Summary: Following a successful vote on Snapshot, $80.77k to pilot a series of quadratic funding rounds for rewarding efforts by Gitcoin Citizens 2. Main aims are to the barrier of entry for contributing to the DAO, determine what the community values most, and help test (dogfood) the Allo protocol.
Voting ends: April 26th
Summary: Following a successful vote on Snapshot, $176.89k to fund support for the “pop-up city/network state” being built by Vitalik among others. The vote is to partner with Zuzalu and showcase the Allo protocol via financial provisions for a Zuzalu Public Goods funding round.
Voting ends: April 29th
Summary: 192.4K USDC to continue maintenance and development of archives.wtf as the main archive center of Nouns DAO over the next 6 months. Pretty interesting archive as is, even to those of us outside of the Nouns ecosystem—definitely worth the check-out.
Voting ends: April 30th
Summary: 10.9 ETH & 15 $LIL to fund Lil Prop House rounds for the next three months. Rounds get bigtime engagement—15-25 rounds proposals are submitted each round (which happens every other week). Check out the proposals submitted in the last round.
Voting ends: April 26th
📝 10 Things To Read or Listen To
Article: “Dashboard: DAO Voting on Ethereum” by Jennifer Tran
Article: “Taming the Whales | What to Do About Sybil Attacks” by Raphael Spannocchi
Article: “proto-DAOs, making DAOs fun again” by Stefan Deleveaux
Article: “Exit Liquidity” by Arthur Hayes
Article: “Assimilating the BORG: A New Framework for CryptoLaw Entities” by Delphi Labs
Article: “Spotify psy-op: AI-generated “elevator” music and media layoffs” by Terry Nguyen
Thread: “Stakeholders & Token Engineering” by TE Academy
Thread: "Community versus Organisation” by Daniel Ospina
Podcast: “Regens Unite with Xavier Damman and Leen Schelfhout” from GreenPill
Podcast: “The Network State: What it gets wrong + alternative models w/ Josh Davila” from On the Other Side
💫 DAO Talk: parks & DAOcreation || DT weekly #38
🤭 Meme of the Week
Tally loves decentralization. That’s why we’re building Tally Zero, a completely decentralized voting application that let's you vote onchain with IPFS via Third Web. Try it here! Or help us build (grants available)! Either way, get excited. Coming soon.™️
P.S. - In the spirit of bear market….enjoy some koalas I saw this week! Took a trip up to Canberra this week! It’s a fully planned city so feels a bit utopian but also like a deserted movie set. Animals were cool, though, as per.