“With no cap on the total supply, is $DOGE destined to be diluted forever?” This question has been asked since 2013, and the answer depends on what kind of dilution you mean. #Dogecoin
One view: There’s no cap on the total supply, so over the long term, each coin represents a steadily shrinking share. Holders have to outperform the annual rate of new issuance just to hold their ground.
Another view: The absolute amount of new coins issued is fixed. As they’re added to an ever-growing supply, the rate of dilution falls year by year. With one-minute block times and low transaction costs, what people care about when tipping or making payments is often whether the money arrives right away—not the total supply decades from now.
I lean toward the second view, but it depends on one thing: people actually using it. Dogecoin launched on December 6, 2013. Its founders were Billy Markus and Jackson Palmer, and its uncapped supply rule has been in the code since day one.
DYOR. Just my personal opinion.
One view: There’s no cap on the total supply, so over the long term, each coin represents a steadily shrinking share. Holders have to outperform the annual rate of new issuance just to hold their ground.
Another view: The absolute amount of new coins issued is fixed. As they’re added to an ever-growing supply, the rate of dilution falls year by year. With one-minute block times and low transaction costs, what people care about when tipping or making payments is often whether the money arrives right away—not the total supply decades from now.
I lean toward the second view, but it depends on one thing: people actually using it. Dogecoin launched on December 6, 2013. Its founders were Billy Markus and Jackson Palmer, and its uncapped supply rule has been in the code since day one.
DYOR. Just my personal opinion.