Dogecoin, does it need to fork to control supply?

One of the most often asked questions about Dogecoin is the infinite amount of supply the coin has and whether the team should change that. To change that, there would have to be a hard fork, but does DOGECOIN need one just to control the supply of the coin? My answer to that is yes, but with caveat. It largely has to do with what people want DOGE to actually be. If you want it to be a cheap-ish coin that everyone can afford and that newbies can start on, then you don’t really need a fork. However, if you are an investor in DOGECOIN and want to see the price appreciate, you most certainly want a fork. In terms of real-world use, I see DOGECOIN as a practical e-commerce coin for the general market and I would like to see it being used at places like Amazon, Target, or Wal-mart. In this instance, I would fork it but I would not get rid of all the inflation, instead I would set it at a little below the inflation of fiat, perhaps 1% a year instead of the 4.5% a year it has right now. For retailers who are interested in always expanding their customer base, you need a currency that inflates a little each year so everyone can have some of it to spend. You do not want a currency that deflates each year so eventually less and less people can have it. Also, you have to remember for cryptocurrencies, part of the supply is lost forever each year because of failed hard drives, lost passwords, etc. Unlike fiat, once its lost, it can’t be recovered because you can’t just print more of it so you need to inflation rate to at least match the loss rate so the supply at least stays stable.
That being said, I still think the rate of 5 billion coins per year is too much inflation and I would like to see it reduced to about 1 billion a year via hard fork. I think this is something that the team should seriously consider to brighten the coin’s future prospects.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s