Vitalik Buterin Suggests Dogecoin To Adopt PoS Using Ethereum Code
Vitalik Buterin, Ethereum’s co-founder has presented ideas on fundamental improvements to Dogecoin, and also how to deal with its inflationary token issuance.
Dogecoin could be looking a major step forward in its evolution, as Ethereum co-founder Vitalik Buterin suggests co-opereation between Ethereum and Dogecoin.
With DOGE has been unable to recapture its previous price levels from earlier on in the year, this proposal could go some way to reigniting interest in the meme token.
Improvements for Dogecoin
As a “Twitter experiment,” Buterin posted a tweet requesting people he follows ask him anything on both crypto, and non-crypto, related questions.
Doing a random twitter experiment just on this day. Only the 268 people I follow can reply to this tweet. Feel free to ask things and I'll talk about anything crypto or non-crypto related.
Similar to what Ethereum is trying to accomplish with ETH 2.0, Buterin suggested Dogecoin change its consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). He added that, by using Ethereum code, developers wouldn’t need to start from scratch.
“Personally, I hope that doge can switch to PoS soon, perhaps using ethereum code.”
Personally, I hope that doge can switch to PoS soon, perhaps using ethereum code. I also hope they don't cancel the 5b/year annual PoW issuance, instead they put it in some kind of DAO that funds global public goods. Would fit well with dogecoin's non-greedy wholesome ethos.
PoS vs. PoW is a topic has been widely debated, as advocates for both sides maintain superiority.
PoS offers more scalability and throughput. But a fully decentralized, high hash rate (strong miner supported) PoW network is said to be more secure.
One important factor in current times will probably come down to environmental concerns, favoring PoS over PoW networks. Critics of PoW say the high electricity consumption and use of polluting power sources are unsustainable in the long term. Naturally, if the shift would occur to more environmental friendly power sources this might change.
Charity proposal to inflationary supply
Some have argued Dogecoin’s weakness to be its inflationary supply, saying how a token with infinite supply has value.
Originally, Dogecoin was launched with a fixed token supply of 100 billion coins. But, due to promoting its use as a tipping mechanism, while also discouraging hodling, developers removed this limit. Currently, $5 billion of DOGE are added to the supply each year.
Buterin said that he’s not trying to change the inflationary issuance. But instead of entering into the token supply, he suggests channeling the funds into a decentralized autonomous organization (DAO) that “funds global public goods.” This, Buterin said, would be in line with Dogecoin’s “wholesome ethos.”
“I also hope they don’t cancel the 5b/year annual PoW issuance, instead they put it in some kind of DAO that funds global public goods. Would fit well with dogecoin’s non-greedy wholesome ethos.“
Around the time that Dogecoin recording price highs, its co-founder Billy Markus resurfaced by posting an open letter on Reddit explaining why he disappeared and how he would like to see DOGE going forward.
In the letter he wrote that it’s his hope that Dogecoin can be a force for good. While not explicitly stated, Markus implied that this would go some way to countering the negative aspects often found in the crypto space.
