The miners’ check the received transactions with previous transactions on the blockchain. This will help maintain mining and stabilize the number of coins in circulation (considering lost wallets and various other ways coins may be destroyed) at 100 billion.”įurthermore, since most of the community do not consider Dogecoin purely an investment, rather a medium of exchange, inflation could be an important factor in its success.īefore being verified, Dogecoin transactions are included in a block. “The goal for the currency is to keep approximately 100 billion coins in circulation – thus after 100 billion Dogecoins are created, rewards will continue at 10k each block.
Thus, an inflation-based tactic was designed so that mining would be maintained and to replace lost coins, helping to keep the supply stable at close to 100 billion tokens.ĭogecoin has a fixed rate of production of 10,000 coins per minute. Also, once a hard cap is hit, it is not profitable for miners to continue sustaining the system. The main issue arising from deflationary coins is that they encourage hoarding as their perceived values increase with time. One thing that separates Dogecoin from the majority of other cryptocurrencies is that it is an inflationary, rather than deflationary cryptocurrency.īitcoin and the majority of other cryptocurrencies that can be mined are created with a hard cap on the supply of coins. The community actively contributes to Dogecoin, even creating new applications like DogePal which is a system that enables people to pay each other with Doge, using email addresses. No other ‘meme coin’ has enjoyed success like Dogecoin has.Ī common phrase used by Shibes is ‘1 DOGE = 1 DOGE,’ meaning that they believe the coin should be used as a transactional currency, instead of being used solely as an investment or speculative asset. This Dogecoin community, on top of being one of its strongest assets, has been key to its survival and success until now. r/dogecoin Reddit community – Source: Furthermore, charities such as DogePizza and SocksForTheHomeless use Reddit as a platform to raise money for good causes. The Reddit group /r/dogecoin has 129k subscribers or ‘Shibes,’ and they use Dogecoin to tip each other for posting enjoyable content. The community enjoys a substantial following on social media.
The community members, who are also referred to as “Shibes” have been known for various charity donations and other altruistic causes.
As stated above, while Dogecoin initially started as a joke, it quickly gained a lot of traction, and a very strong community was built around it, which now is one of Dogecoin’s greatest assets.
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