Billy Marcus, co-founder of Dogecoin, recently released a message about Dogecoin deflation on the X platform, which attracted widespread attention in the currency circle. So, how does Dogecoin achieve deflation? What changes can this plan bring?
Billy Marcus said that it is not complicated to achieve deflation in Dogecoin. The key lies in two steps: first, developers need to submit code updates on GitHub and propose changes to the supply mechanism; second, community members and miners must reach a consensus to support and run the new version of the protocol. As an open source proof-of-work (PoW) cryptocurrency, the operation of Dogecoin depends entirely on the support and consensus of the community and miners, which means that its future development is highly dependent on these core forces.
Currently, the total supply of Dogecoin has exceeded 146.78 billion, with an additional 5 billion DOGE per year. From the supply model point of view, the design of Dogecoin is different from Bitcoin. Although the issuance of Dogecoin is fixed, the inflation rate will gradually decrease over time, which makes its monetary policy more flexible.
Unlike Bitcoin, which has a limited total supply, Dogecoin does not have a clear upper limit. This "unlimited supply" feature has been controversial, but it also provides Dogecoin with the potential to compete with legal tender. Billy Marcus also mentioned that the design of Dogecoin is very similar to Bitcoin, with the only difference being the parameter settings. This design may allow Dogecoin to have better flexibility and adaptability in the future.
Marcus mentioned in his statement that the supply of Bitcoin can also be adjusted through community consensus, emphasizing the importance of flexibility in blockchain projects. Although Bitcoin has strict limits on total volume, its supply can be adjusted with the unanimous consent of the community under appropriate circumstances. This echoes the design concept of Dogecoin and further reflects the variability and adaptability of cryptocurrency projects.
Tesla CEO Elon Musk also expressed his views on the future of Dogecoin. He believes that the design of Dogecoin has the potential to be superior to traditional fiat currencies in the long run, especially in dealing with inflation. This was emphasized in Billy Marcus's sharing that Dogecoin's deflation mechanism and supply design may make it an important player in the global economy in the future.
The introduction of Dogecoin's deflation plan has undoubtedly brought a new round of discussion and expectations to the market. For investors, the adjustment of DOGE's supply mechanism means that there may be a more stable supply structure in the future, which will in turn affect the price. At the same time, Dogecoin's deflation plan may further attract more developers and miners to participate, promoting the long-term development of the project.
Dogecoin's deflation plan is a key step in its development. If it goes smoothly, DOGE is expected to become a more competitive cryptocurrency in the future. Investors can pay close attention to the implementation of this plan and its impact on the market.
