As of December 2022 there were more than 132 billion Dogecoin tokens in circulation. Additionally, over a million tokens are being minted each day. Dogecoin does not have a supply limit, unlike Bitcoin which has a limit at 21 million coins. This means that there is no limit to how many tokens can be issued and released to the public. While this setup offers miners more chances to earn rewards, it makes the price more vulnerable to inflation risk over the long-term.
How do Dogecoin tokens are produced?
Dogecoin employs a proof of work consensus mechanism. Tokens are created and distributed to the public via an energy-intensive process called miners. To solve complex math problems and validate transactions, miners use specialized computers. This generates new coins.
Dogecoin adds one block to the chain each minute of every day. Each block contains 10,000 DOGE (worth more than $700, based upon December 2022 values). This is how 1.44 million Dogecoins per day are created and then released to the public.
How does Dogecoin supply impact its price?
Although its market cap currently exceeds $10 billion, Dogecoin is still well below a dollar due to the ever-growing supply tokens that are being minted every day. Dogecoin’s price has risen, reaching a record high of 74c in 2021. However, these price increases are usually short-lived because of its huge and growing supply.
Dogecoin basics
Dogecoin, a cryptocurrency, was founded in 2013 by Jackson Palmer and Billy Markus, both software engineers. Dogecoin is widely considered the first meme coin. It was originally created by Jackson Palmer and Billy Markus, software engineers.
Dogecoin’s functionality looks similar to other cryptocurrency. It was created using blockchain technology, and is intended to be used primarily as a method of payment. Dogecoin is a volatile cryptocurrency market. Dogecoin’s value has fluctuated greatly over the years. This is due to its inexhaustible supply.
Dogecoin’s future
Dogecoin is still one of the most popular cryptocurrencies. However, it’s uncertain what the future holds. Dogecoin and other proof-of-work cryptocurrency have been widely criticised for the high energy consumption of cryptocurrency mining operations.
According to a Digiconomist 2022 study, the average amount of energy used by every Dogecoin transaction exceeds that contained in nine fully charged Tesla Model 3 battery packs.
In an effort to make Ethereum a proof of stake operating system, the Dogecoin Foundation announced earlier this year a partnership with Vitalek Buterin, co-founder of Dogecoin. In an event known as “the merge”, Ethereum successfully moved from a proof of work system to proof-of stake. This would reduce Dogecoin’s carbon footprint by a lot, but the foundation has not yet announced a date when changes may be made.