When Musk's name is linked to cryptocurrency, the market is never short of volatility - but this time, his actions regarding DOGE (Dogecoin) have plunged its ecosystem into an unprecedented 'split': miners are collectively anxious about hashing power, retail communities are divided into two factions over 'belief' and 'interest', and DOGE, which once relied on 'meme consensus', now stands at the crossroads of 'practical transformation' and 'deviation from original intent'. This chain reaction led by Musk is reshaping the survival logic of DOGE.

Musk's 'key leap': from 'social media shoutouts' to 'deep ecological binding'

Unlike the past short-term stimulus of 'one sentence to boost prices' on social platforms, Musk's recent actions directly target the core pain points of DOGE - the lack of actual application scenarios. According to internal Tesla information and disclosures from the blockchain industry, two key initiatives have been implemented, completely breaking the property of DOGE as a 'purely speculative asset':

  1. Payment testing at Tesla Supercharger stations: Some stations have initiated DOGE payment pilot programs, and clearly stated 'to optimize DOGE transaction speed to adapt to high-frequency payment scenarios' - previously, DOGE's block confirmation time was about 1 minute, making it difficult to meet the efficiency demands of offline payments; this optimization directly targets this core shortcoming.

  2. SpaceX's supply chain settlement collaboration: An agreement has been reached with the core DOGE development team to include DOGE in the 'small settlement system of the space exploration supply chain', with the first applications covering cross-border small payments for satellite component procurement, opening up an industrial-level application scenario for DOGE for the first time.


The impact of these two moves was immediate: Market data shows that within 48 hours after the announcement, the number of on-chain transactions for DOGE surged by 320%, with 'small payment transactions' accounting for less than 5% rising to 28%, hitting a historical high. Although DOGE entered the top ten in cryptocurrency market capitalization thanks to Musk's endorsement, it has always been trapped by labels like 'slow transactions, unstable fees, and lack of practical scenarios' of a 'meme coin', and this binding with Tesla and SpaceX formally promotes its transition to a 'payment cryptocurrency'.

Internal splits in the ecosystem: Miners' 'interest crisis' and retail investors' 'belief confrontation'

Musk's transformation actions have sparked intense controversy within the DOGE ecosystem, with divisions between miners and retail investors rapidly heating up, and various cryptocurrency forums and communities have become 'debate arenas'.

Miners: 'Collective opposition' under concerns of hashing dilution and monopoly

For DOGE miners, the 'payment transformation' is almost 'bad news'. DOGE uses the Scrypt algorithm, and miners' earnings mainly depend on 'block rewards + transaction fees', while Musk's two initiatives happen to hit at the core of their interests:

  • Hashing output efficiency is diluted: Adapting for high-frequency payments requires shortening block confirmation times - currently, DOGE's block time is about 1 minute, and to meet offline payment needs, it needs to be compressed to 10-15 seconds, which means that miners' hashing output per unit time will be directly reduced.

  • 'Hashing power monopoly' triggers survival anxiety: To ensure payment stability, Tesla plans to build a 'DOGE exclusive node cluster' to enhance transaction processing capabilities through centralized nodes. A head DOGE mining operation leader stated: 'This cluster might seize over 70% of the transaction verification rights, and ordinary miners' fee income will plummet by 50%, making it hard to recover the initial investment in mining equipment.'


The data confirms this anxiety: After the announcement, DOGE's overall network hashing power decreased by 18% within 24 hours, and some small and medium-sized mining operations started shutting down, with used mining equipment prices plummeting by 30%, while hashing power fluctuations reached a new high for the year.

Retail investors: the 'opposition split' between belief factions and speculative factions

The divisions among retail investors are even more complex, showing a distinct 'polar opposition':

  • Belief faction: Celebrating 'original intent realization': Many early DOGE holders believe that Musk's actions have realized DOGE's 'original intent'. 'We initially chose DOGE because we believed in its attributes of 'decentralization and proximity to ordinary users', now it has transformed from a 'joke coin' to a 'currency that can actually be used', and we no longer have to rely on Musk's words for price fluctuations.' A statement from a DOGE community administrator represents the mindset of most long-term holders - they hope DOGE will shed the label of 'pure speculation' and have stable value support.

  • Speculative faction: Panic over 'quick money path being cut off': This group of investors mostly entered during DOGE's surge in 2023, with the core demand being 'short-term arbitrage'. Although DOGE's price surged by 45% after the announcement, they are more concerned about 'narrowing fluctuations after the transformation': the price of practical cryptocurrencies depends on 'application implementation progress', rather than 'market sentiment speculation', and the short-term arbitrage space will be significantly compressed. 'I bought DOGE to make quick money, now it has turned into a 'payment coin', it rises slowly and can't hold its value, Musk has cut off our income!' Complaints from a retail investor in a forum resonated with many speculative investors.

DOGE's 'transformation' is uncertain: three uncertainties loom large

Although Musk's actions have brought DOGE a 'transformation opportunity', whether this 'change' can be sustained still faces three core uncertainties:

1. Application scenarios: Pilot limitations are significant, and large-scale implementation is doubtful

Currently, both applications are in the 'small-scale testing' phase: Tesla's DOGE payments cover only 3 pilot areas, limited to 'charging service fees', and have not extended to vehicle purchases; SpaceX's supply chain settlement is also only for 'small payments for satellite component procurement', and a large-scale system has yet to be formed. If subsequent progress does not meet expectations, DOGE may fall into the predicament of 'empty practical value' and return to the 'pure speculation' track.

2. Regulatory risk: Payment attributes trigger stricter compliance reviews

Previously, DOGE was repeatedly listed as a 'potential security asset' by the US SEC (Securities and Exchange Commission) due to its 'lack of actual value'; now, transitioning to a 'payment currency' will face stricter financial regulations. For instance, the EU (MiCA) clearly states that 'cryptographic assets used for payment must meet compliance requirements such as anti-money laundering and anti-terrorist financing', while DOGE's current anonymous transaction attributes are difficult to meet this standard - if forced to adjust algorithms to adapt to regulations, it will further impact the miners' hashing power ecology and user habits.

3. Loss of decentralization: 'Semi-centralization' deviates from original intent

Musk's push for a 'DOGE exclusive node cluster' is essentially a 'semi-centralized' model - this directly contradicts DOGE's original philosophy of 'decentralization and proximity to ordinary users'. If Tesla and SpaceX further control DOGE's nodes and transaction verification rights in the future, DOGE may become a 'token exclusive to Musk's enterprises', losing the core value of cryptocurrency. This is also a major concern for many long-term holders about the 'deviation from original intent': 'What we want is the 'user's DOGE', not the 'Musk's DOGE'.

Conclusion: The game and choices amid the pains of transformation

Musk's actions have pushed DOGE to a turning point: it is no longer simply a speculative asset that survives solely on 'meme jokes', but it has not yet become a mature 'payment cryptocurrency'; the interests of miners are harmed, and the beliefs of retail investors are split, indicating that DOGE's 'transformation' path is bound to be fraught with growing pains.


For investors, it is important to clearly recognize that DOGE's value logic has changed - from being 'driven by Musk's endorsement' to 'driven by application implementation capability', and short-term price fluctuations should not become the core of decision-making; for the DOGE ecosystem, the future's key lies in 'three balances': the balance between practical transformation and miners' interests, the balance between centralized efficiency and decentralized original intent, and the balance between commercial cooperation and regulatory compliance.


The final outcome of this game may only be revealed after the applications of Tesla and SpaceX are fully implemented, and the interests and beliefs of various ecological parties find a new consensus.

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