- Dogecoin (DOGE) is an open-source cryptocurrency created in 2013 by Jackson Palmer and Billy Markus. The project was initially founded as a joke based on a popular Shiba Inu meme.
- DOGE is a “meme coin”, a cryptocurrency founded with no intended utility or value beyond being a joke. DOGE is one of the first meme coins.
- Dogecoin’s blockchain was initially derived from Litecoin. It uses a scrypt algorithm and the same proof of work (PoW) consensus.
- Since August 2014, Dogecoin has transitioned to auxiliary proof of work (AuxPoW) with Litecoin, which means miners can use their computational power to mine blocks on multiple chains concurrently, thereby allowing the work done on one blockchain to be leveraged as valid work on another chain.
- Dogecoin does not have a maximum supply, therefore, it is an inflationary asset. The block reward is fixed at 10,000 DOGE per block, with blocktimes at approximately 1 minute. This amounts to approximately 5.26 billion DOGE entering circulation per year. As of June 2022, the circulating supply of DOGE is 132,670,764,299, implying DOGE in 2022 has an effective inflation rate of 3.9% per annum. Given that the 5.26 billion DOGE emission is fixed annually, DOGE is actually disinflationary in the long run.