Unveiling the Expansion Path of $DOGE: Why is Everyone Accepting 5 Billion New Coins Every Year?
Dogecoin has a truly unique issuance mechanism, and it even relates to GPT!
Did you know? Dogecoin is issued every minute, adding ten thousand coins at a time, which amounts to 5 billion new coins each year. Based on the current price, this can increase Dogecoin’s market value by 200 million annually, with a growth rate of about 3%. Although this growth rate is not significant, it seems that everyone is quite accepting of it. After all, Bitcoin is becoming increasingly scarce, while Dogecoin is expanding, each with its own way of playing!
Some people might wonder: Are these 5 billion new coins issued daily or all at once?
ChatGPT provided the answer: Dogecoin's issuance is rewarded daily through the blockchain, not issued all at once. Every minute, a new block is generated on the blockchain, containing 10,000 Dogecoins. Over the course of a day, that adds up to 14.4 million new coins, accumulating to 525.6 million in a year.
This mechanism is designed quite steadily, ensuring that Dogecoin can add 5 billion coins each year.
Now let’s talk about the current status of Dogecoin:
By the year 2024, Dogecoin's market capitalization has reached about 66 billion USD, with 147 billion Dogecoins in circulation. Market capitalization is calculated as the current price multiplied by the circulating quantity, which is increasing every year because there is no cap on Dogecoin, and it is fixed to issue 5 billion coins annually.
Looking ahead to the next decade, Dogecoin's issuance strategy remains unchanged, with 5 billion new coins issued each year. After ten years, that amounts to 50 billion new coins. By 2033, although the proportion of newly issued Dogecoins will decrease in the total supply, the inflation rate will decline, but the rewards for miners will still be sufficient, keeping the network stable.
The expansion of Dogecoin is actually a design feature. Unlike Bitcoin, Dogecoin has no cap, and it issues 5 billion new coins each year. This way, miners have rewards to earn, the network remains secure, and transactions can proceed smoothly without becoming scarce due to a fixed supply.
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