With this move by Musk, will #GOGE completely change?
The recent reform plan for Dogecoin has caused a huge uproar among miners and retail investors. On the surface, it seems like an 'upgrade', but behind it is actually a collision of technology, interests, and beliefs.
Core of the reform
Musk's team proposed:
New token halving — Cut new annual supply by 50%.
Introduce a burning mechanism — Making DOGE less and less as it is used, theoretically leading to gradual deflation.
It sounds great, but there are quite a few practical issues.
Three major contradictions
Dramatic decrease in miner income: They may earn 1.2 billion dollars less in a year, and they are likely to choose not to upgrade the system, directly resisting with computational power.
The chain itself is weak: Limited functionality, can only rely on cross-chain bridges, but the vulnerability rate of this bridge is three times the industry average, posing huge security risks.
Community division: 2.3 billion DOGE have already been dumped by retail investors, indicating that the market is not uniformly supportive of the reforms.
Key time points
The feasibility of the reform mainly depends on:
Whether the grayscale ETF will be approved in October
Whether the mining pool's computational power support rate can exceed half
If successful, DOGE may first acquire the label of 'deflationary meme coin', hitting $0.69 with a market cap exceeding 100 billion.
If it fails, the price may even drop back to $0.16, making it difficult to cover miner costs.
Operational advice
In the short term, one can pay attention to a small position layout around $0.24, but must note:
Use options or hedging tools to hedge risks
Avoid two major black swans:
① If the SEC determines DOGE is a security, fines could exceed $5 billion
② If the Qubic computational power alliance initiates an attack, DOGE will be severely injured
In summary: Opportunities and risks coexist, do not go all in.
