Lyric discussion by Onimarus 

Cover art for Dirty Paws lyrics by Of Monsters And Men

This song is pretty literal in what it's saying

 When Spring starts, paper wasps create nests that grows while housing several generations of workers. At the end of Summer, the Queen produces eggs which will develop into insects that will leave the nest to mate and start the process over again next year.
 Once this generation leaves, those nest's life is basically over. This means anything left behind is ripe for picking, and crows seem to have the uncanny ability to know just when this time occurs to gobble up the larvae and bugs lying around.
 Of course, paper wasps also create nests in the ground as well. Just as the crows and jays do, coyotes, skunks, and foxes will dig up these nests to eat those protein-rich larvae as well. Coincidentally, coyotes, skunks, and foxes are known to eat grass as well.
 Once more: Dragonflies are carnivorous bugs that prey on other insects and have been known to eat bees and wasps.

This song is about a young (I'll say Fox) growing up and having their own pup. Growing up a bit, the pup now hunts small bugs and berries but usually sticks to grass as it's the most abundant source for him around the area. While out searching for food, this pup spots a dragonfly and chases it around semi-playfully leading the fox to a nearby forest. 
As I've said before, Foxes will dig up nests and eat the larvae and whatever else after the next generation ups and flies away. Well, the pup loses interest in the Dragonfly and runs off to search for these nests. He wasn't alone, though. Birds and other animals alike were eating what was left of both the nests and bugs.

They didn't get all the nests, though. Those left behind in the nests that were still intact didn't dare leave them (either due to self-preservation or just instinct since their duty was finished). Outside what few nests remained was a feeding frenzy of birds and animals; the most notorious one being the Pup that followed the Dragonfly. After most wasps (including the Queen) eaten or somehow killed, this story ends with that Dragonfly flying back to where the Pup first saw it.

tl;dr It's a song about the feeding frenzy that occurs in forests over 'left-over' nests.

My Interpretation

I think Dirty Paws = Arctic fox. Largest mammal native to Iceland before settlement. But I think the meaning is more metaphorical than your explanation, quite likely a parable to explain to children.