#美联储放鹰
Recently, Dogecoin co-founder Billy Markus made a significant announcement regarding Dogecoin's deflation on the X platform, akin to a boulder hitting water, instantly stirring up waves in the cryptocurrency community and attracting countless eyes. As a participant closely following Dogecoin dynamics, this topic undoubtedly contains many key points worth delving into. Next, let us analyze the key information and share some personal insights.
1. How will Dogecoin's deflation be realized?
Billy Markus revealed that the path to achieving Dogecoin's deflation is actually not complicated, with the core points focusing on the following key steps:
Developer's initiative: A Pull Request needs to be initiated on the globally recognized code hosting platform GitHub, aiming to make precise modifications to the existing Dogecoin code and implant key code snippets related to the deflationary function. This action is akin to planting a seed of transformation for the future development of Dogecoin, serving as the technical cornerstone for the activation of the deflation mechanism.
Unifying the community and miners' strength: It is essential to persuade the vast Dogecoin community members and the miner group controlling the hash rate to willingly accept and practically run the new version of the protocol. It’s important to note that Dogecoin, as a cryptocurrency adhering to the open-source philosophy and using the Proof of Work (PoW) mechanism, the voice of the community is crucial, representing widespread public opinion and market demand; while miners hold the key power to determine the operational direction of the network, safeguarding it with their hash power, and significantly influencing the updates of the protocol. Only with a high degree of consensus between the community and miners can the deflation engine of Dogecoin be smoothly ignited and roar to life.
2. A comparison of the supply mechanisms of Dogecoin and Bitcoin
Analysis of DOGE supply status: Currently, the total supply of Dogecoin has risen to approximately 146.78 billion, and continues to expand at a fixed rate of 5 billion annually. Although its issuance seems constant, a deeper investigation reveals that, over time, the inflation rate of Dogecoin is actually on a gradual decline. This unique supply rhythm stands in stark contrast to that of Bitcoin.
Design philosophy differences highlighted: Compared to Bitcoin's strictly limited total supply of 21 million, the design structure of Dogecoin does not set a similar hard ceiling, and its 'unlimited supply' characteristic is evident, which is undoubtedly one of the most significant differences between the two. However, Billy Markus emphasized that Dogecoin and Bitcoin are very similar in the underlying logic of their designs, differing only in specific parameters such as block rewards and mining difficulty adjustments. He even further pointed out that Bitcoin's seemingly fixed supply could also be adjusted under certain conditions, namely when community members work together to reach a consensus, which fully demonstrates the inherent flexibility and malleability of blockchain projects.
Musk's view on Dogecoin's potential: It is worth mentioning that business tycoon Elon Musk has publicly expressed the view that Dogecoin, due to its unique design structure, could potentially exhibit superior performance in addressing long-term economic challenges and competing with fiat currencies, showing a remarkable 'acceleration'.
In summary, the proposal of the Dogecoin deflation plan not only outlines new possibilities for Dogecoin's own development path but also prompts us to re-examine the differentiated competitive landscape among various cryptocurrencies. In the future fluctuations of the cryptocurrency market, whether Dogecoin can achieve a turnaround through deflation strategies is worthy of our continued attention.
