Is the Dogecoin supply limited?

With Bitcoin capped at 21 million, many people ask: Is the Dogecoin supply limited?

The short answer is ‘no’.

The Dogecoin blockchain pays miners some 5 billion DOGE each year, as a reward for validating transactions. This means the Dogecoin supply is continuously inflating. In a decade’s time, the current supply will increase again by half.

But what does this mean for the Dogecoin price? And are there ways to combat Dogecoin inflation?

Could the Dogecoin supply be limited or capped?

Dogecoin co-founder Billy Markus said this is one of the questions most people ask him.

He always said no. Primarily because Markus stepped away from Dogecoin, so cannot edit the source code. But it’s also because Dogecoin needs inflation to be able to reward miners. Without paying Dogecoin, there’s no incentive for people to validate transactions.

Compare Dogecoin with a hyper-deflationary token like EverGrow. 

EverGrow is built on the BNB Chain, so it doesn’t need to worry about validation. Instead EverGrow charges 2% of every buy or sell to burn EverGrow tokens. It also has applications like an NFT marketplace (LunaSky) which burns EverGrow tokens using 100% of its revenue.

EverGrow is on track to burn about 10% of its supply this year. This will directly translate into higher prices even if the market cap remains the same.

You can read about EverGrow here: https://evergrowegc.com/

Are there projects to burn Dogecoin?

The DogeChain project passed a proposal in October to burn 800 billion tokens. The DC price pumped 300%.

DogeChain is a layer-2 blockchain that’s built to allow Dogecoin holders access to dApps and a DeFi ecosystem. The only problem is that DogeChain is not Dogecoin. So while the project might create more Dogecoin use cases it’s not going to burn the supply.

According to Dogecoin.com: “Dogecoin does not need coin burning marketing mechanisms that new tokens and other chains have attempted to implement to artificially inflate their prices. Simplez.”

So if anyone is going to burn Dogecoin, it’s not going to come from lead developers. 

Until then, Dogecoin will continue to increase its supply at 5 billion DOGE per year.