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Dopamine functions as the motivation and pursuit chemical, rather than just the reward chemical. It plays a crucial role in creating the desire to engage in activities that lead to goal achievement, such as working out or completing projects. The podcast emphasizes that dopamine should not be viewed negatively; rather, it is essential for motivating people toward desirable behaviors. By correcting misconceptions about dopamine and using a wave pool analogy, it illustrates that both peaks and troughs in dopamine levels drive motivation and push individuals to take action.