As i have mentioned doge has high inflation this is not sustainable in the long term if demand doesn’t outpace supply growth, inflation could pressure prices downward threaten doge 's existence.You can not create infinite coins without demand, buyers, or use for them, it will lead to total devaluation.
Initially founders Billy Markus and Jackson Palmer had set a 100 billion cap, but removed it on February 1 2014 to prevent scarcity from turning doge into a speculative asset,to counteract the loss of coins from lost wallets, to mantaining a steady predictable inflation, mimics real-world economies where moderate inflation encourages circulation, spending, not hoarding, aligning with its vision as a fun, spendable currency.Although these are excuses used for beautification and in support to the main at least by me reason which is to keep miner rewards active for network security.
The arguments mainly presented in support of this situation of high inflation are that dogecoin has a fixed annual issuance around 6 billion new coins while this means the total supply grows forever, the percentage inflation rate decreases every year as the new coins become a smaller fraction of the ever growing total supply. What was ~5% inflation years ago is now around 3.5% and will continue to decline.Encourages spending, not hoarding by preventing scarcity, the model is designed to make dogecoin a spendable currency for tips and transactions, rather than a "digital gold" asset to be hoarded like Bitcoin.Counters lost coins, coins are permanently lost when people lose their wallets or passwords. The steady new issuance helps offset this loss, keeping coins available for circulation.Predictability and stability, the fixed issuance is transparent and predictable, creating a stable economic model that avoids the volatility of supply shocks (like Bitcoin's halvings).
Additional high-profile supporters like Elon Musk have argued this is a "feature, not a bug" for a functional currency.More specificaly Billy Markus had seen the problem so he tried to explain the technical process for changing Dogecoin's code to remove inflation, in an attempt to convince the community and miners, that to make dogecoin deflationary, a hard cap on its total supply would need to be implemented. Currently, dogecoin has a fixed annual issuance of around 6 billion coins, meaning new coins are created forever to change this, a code update (a pull request) would be required to modify the protocol, specifically to set a maximum supply limit (e.g., 100 billion or 150 billion coins) after which no more coins could be mined. This change would need consensus from the dogecoin community and miners to adopt the new code, as Dogecoin is an open-source, decentralized project. Billy Markus,(Shibetoshi Nakamoto,his pseudonym is Shibetoshi Nakamoto, a playful combination of Shibe from the Shiba Inu dog meme and Satoshi Nakamoto) , has confirmed this is technically possible but emphasized that the decision lies with the community if they wanted a change,stated that the code responsible for Dogecoin’s inflation is located at line 146 of the Dogecoin GitHub repository, where the block reward is set to return 10000 * COIN;. He clarified that to remove inflation, someone could modify this line, submit a pull request, and then convince the community and miners to adopt the change. He had seen the inflation problem but the response was not warm there was no alacrity for changes so he did not insist he led to a deferment.He made his suggestion he saw reluctant conflicting climate so he explicitly stated, "Now stop f**king bothering me about it," indicating that the decision was up to dogecoin community so after Elon Musk called the inflation a "feature, not a bug," Markus agreed with Musk's statement, explaining that the steady, predictable inflation is "ideal for something intended as a currency." His agreement appears to me not genuine, an insincere excuse based on his will to don 't bother to be deferencial to the community 's consensus.
Beyond this what is the dogecoin foundation 's response on the coming as it seems storm, before the catastrophe ?
Right now, and for the next hundred years or so, Dogecoin operates like, and will continue to operate like, most other crypto assets. “Capped” assets are nowhere near mined out – and will continue adding to their supply, just like Dogecoin, for the foreseeable future.
Dogecoin’s supply is not unlimited, because it has an absolute limit of issuance per block, per day, per year – just like other coins do. The only difference is that Dogecoin’s issuance does not have an end date. Therefore, Dogecoin is only “infinite” over “infinite time”. Over finite time, its issuance is, in fact, finite.
This annual issuance is needed to pay miners and keep the network secure. Other chains, like Bitcoin, which theoretically will see their yearly issuance stop completely in 2140, will need to find a way to secure their network at that time (if it will indeed still exist), or the design of their consensus mechanism will need to change completely. Simply stated, putting a cap on Dogecoin would render the network insecure and vulnerable to attacks
dogecoin does not need coin burning marketing mechanisms that new tokens and chains have attempted to implement to artificially inflate their prices simple
this is what they write on https://dogecoin.com
I will continue on that theme in my next article.Beyond this i will have a trading update on my previous post 's comments every time so if someone wants to copy my trade or to make a suggestion, can do it.These are my recent trades, i sold at 0.096 i sold early i wanted to make a move it was emotional a complete failure so don t copy me i hope noone followed me, make only suggestions maybe in that way you will prevent me from emotional moves, i am waiting now to fall, i should wait but i don t really know, i want to trade to make a move so.....
thanks for your time
kisses
