#狗狗币现状及未来 Out of curiosity, I looked up the history.
First, we need to understand the supply mechanism of DOGE coin. Unlike many other cryptocurrencies like Bitcoin, DOGE coin does not have a maximum supply limit. According to its official technical documentation, the initial supply of DOGE coin is 100 billion. While Bitcoin produces a block approximately every 10 minutes, DOGE coin generates a new block every minute, resulting in an annual increase of 5 billion DOGE coins. At the same time, DOGE coin has a fixed inflation rate, meaning that every 60,000 blocks, the reward is halved, which indicates that the issuance speed of DOGE coins gradually slows down.
This setting has sparked controversy. On one hand, the large supply of DOGE coins and the production of new coins every minute could lead to price pressure on DOGE coins. Excessive supply may weaken the stability of the coin's value. On the other hand, supporters of DOGE coin argue that this mechanism ensures liquidity and broad acceptance of DOGE coins. The low price of DOGE coins makes it easy for ordinary people to buy and trade, promoting usage and dissemination on social media.
However, it is worth noting that the developers of DOGE coin announced in April 2021 that they were planning to change the supply mechanism of DOGE coin. They proposed a new initiative called the 'Lala Chain' protocol, aimed at reducing the inflation rate of DOGE coins. Specifically, they plan to prevent the total supply of DOGE coins from increasing and adopt a mechanism similar to the total amount of Bitcoin mining. This change may be implemented in the coming years and will make DOGE coin a relatively scarce cryptocurrency.
This proposal has raised concerns and controversies within some DOGE coin communities. Some believe that changing the supply mechanism could weaken the appeal of DOGE coins and cause it to lose its unique characteristics. However, others argue that this change could enhance the value of DOGE coins and attract more investors and users.
Overall, the current emission mechanism of DOGE coins results in a new block being generated every minute, leading to a large supply and continuous inflation. However, the developers of DOGE coin have proposed a plan to change the supply mechanism to reduce the inflation rate of DOGE coins and make it closer to a scarce asset. This proposal has sparked some controversy but could also bring new development opportunities for DOGE coins. Ultimately, whether DOGE coins will stop increasing in supply can only be determined by time and the decisions of the community. It is hoped that future developments will make DOGE coins more stable and actively integrate into the cryptocurrency ecosystem.
