Dogecoin Co-Founder Reveals How To Make DOGE Deflationary

As a seasoned analyst with over two decades of experience in the finance and technology sectors, I have seen countless cryptocurrencies come and go, each with their unique characteristics and quirks. However, none have managed to capture the hearts and minds of the general public quite like Dogecoin (DOGE). The recent revelation by its co-founder Billy Markus on making DOGE deflationary has sparked a renewed interest in this meme coin.


Billy Markus, one of the creators of Dogecoin, has shared insights on how to make Dogecoin operate with a decreasing money supply, or deflationary. Unlike most cryptocurrencies, Dogecoin, known for its meme origins, currently has an unlimited total supply and issues 5 billion coins per year. This constant flow of new coins could potentially affect the coin’s value in the long run.

Dogecoin Founder Reveals How To Make DOGE Deflationary

In a recent post on X, Billy Markus unveiled the GitHub code aimed at curbing Dogecoin’s inflation rate. He suggested that individuals interested in making Dogecoin deflationary could submit a pull request and rally the community and miners to adopt the updated version.

Presently, the most popular meme coin boasts a total minted amount of approximately 146.78 billion DOGE. This number is expected to increase over time as an additional 5 billion coins enter circulation each year via mining rewards. Yet, it’s important to note that the inflation rate associated with this coin decreases annually when compared to its total supply.

Billy Markus’ disclosure arose after criticisms concerning Dogecoin’s unlimited supply. Notably, he compared DOGE to Bitcoin when addressing its inflational nature. Markus stated that in essence, DOGE and BTC share similarities due to slight modifications in parameters.

He made this statement because Bitcoin’s total supply can increase from 21 million if the community and miners agree. Meanwhile, Markus also noted that based on its 21 million supply, BTC will continue to witness a supply shock until 2140.

In another post, the co-founder of DOGE reiterated once more the community’s influence over the inflationary nature of the meme coin. He emphasized that the community holds the reins and has done so since Dogecoin is an open-source, proof-of-work (PoW) cryptocurrency, with miners concurring to the code.

Elon Musk Says Inflationary Status Is A Feature Not A Bug

In response to Billy Markus’ disclosure about making Dogecoin deflationary, Elon Musk stated that he views Dogecoin’s consistent inflation rate as a beneficial trait rather than a flaw. This steady decrease in inflation rate is known as “flat inflation.

Markus expressed his belief that Dogecoin’s inflational nature suits it well for its purpose as a currency. He pointed out that this digital coin’s inflational status remains consistent and predictable, with a decreasing percentage over time. He proposed that this quality makes DOGE superior to the Dollar in terms of currency value, due to its significantly lower inflation rate.

Dogecoin Co-Founder Reveals How To Make DOGE Deflationary

 

Elon Musk’s remark was made following his appointment by Donald Trump to head the Department of Streamlined Governance (DSG). It’s noteworthy that this department was named by Musk himself, and some speculate the resemblance between DSG and DOGE is intentional. Given Musk’s reputation for subtly promoting the leading meme currency, this coincidence has sparked intrigue.

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2024-11-13 20:36