Dogecoin ($DOGE) has always been an attractive cryptocurrency, not only because of its meme origins but also because of its unique monetary policy: flat inflation. Elon Musk, in response to Dogecoin creator Shibuyashi Nakamoto, has praised this aspect, describing it as a feature rather than a flaw. But what does this mean and why could it be good for Dogecoin’s future? Let’s break it down. What is flat inflation? Unlike many cryptocurrencies with a limited supply (like Bitcoin), Dogecoin creates a fixed number of new coins – 10,000 Dogecoins per minute or about 5 billion Dogecoins per year. This constant and consistent factor is what makes it “stable.” Currently, there are over 400 billion Dogecoins in circulation. The addition of 5 billion new coins annually reflects the gradual decrease in the total supply. For example: this year, the inflation rate is about 1.25% (5B/400B). Next year, when the total supply increases, the inflation rate will drop to less than 1.25%. This gradually decreasing inflation rate makes the cryptocurrency’s policy predictable and sustainable in the long run. How long will it take to double the Dogecoin supply? With 5 billion Doge being generated annually, it will take 80 years to double the current supply of 400 billion Doge. But there is something important to note: In 80 years, the total supply of Dogecoin will be 800 billion and the annual inflation rate will drop to less than 0.63%. Compare that to fiat currencies like the US dollar, which loses half its value every 20 years due to inflation. In fact, over a 300-year period, the dollar could experience an inflation rate of up to 30,000 times greater than Dogecoin’s stablecoin inflation model. Why Low Inflation is a Good Thing Sustainable Reward for Miners and the Community Dogecoin’s inflation ensures that there are always rewards for miners when verifying transactions and ensuring the security of the network. Unlike Bitcoin, where mining rewards decrease over time due to a limited supply, Dogecoin’s stablecoin issuance helps keep the ecosystem running. This not only rewards miners but also provides indirect benefits to the Dogecoin community at large — developers, projects, and users — by keeping the network healthy and functional. Fixed and Predictable Currency Policy Unlike other fiat currencies, which can be manipulated by governments or central banks to inflate prices, Dogecoin’s inflation rate is fixed and difficult to change. This predictability builds trust and eliminates the uncertainty caused by outside interference. The inflation rate decreases over time. While Dogecoin’s absolute supply inflation remains constant (5 billion DOGE per year), its relative supply inflation gradually decreases as the total supply increases.Over time, the impact of the new DOGE on the value of this coin becomes intangible. Is Dogecoin really going to halve in 80 years? Not necessarily. Inflation concerns are causing the value of this coin to almost halve, as it is believed to have reached its maximum potential. However, there is still room for Dogecoin adoption, growth, and utility. As demand for DOGE increases, its value can rise despite new supply joining the market. Additionally, Dogecoin’s inflation mechanism ensures an economic process by encouraging participation in the ecosystem. This constant growth can offset the effect of deflation. Flat Inflation vs. Angular Inflation Unlike slanted (or percentage) inflation models, where the supply increases by a percentage compared to the current supply (leading to boundless inflation), Dogecoin’s flat inflation ensures long-term stability. Simple and fair, it fits with the nature of the original cryptocurrency: a decentralized and predictable currency. Final Thought Dogecoin’s stable inflation is a forward-thinking design, balancing economic forces with long-term stability. It ensures active community participation, maintains miners, and avoids the traps that arise as a result of monetary inflation. According to Elon Musk, this is a feature, not a bug. As Dogecoin continues to grow in adoption and utility, its constant inflation could prove to be one of the best

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