Dogecoin has experienced a significant decrease in value over the past week, falling nearly 10% after Michi Lumin, a core developer, revealed that there are currently no concrete plans to switch to Proof of Stake (PoS) for the Dogecoin network.
On December 29, Michi Lumin tweeted that even if an influencer has a large following and speaks with authority, they may still need to be more knowledgeable about the inner workings of Dogecoin.
Just because one says a validation method is changing doesn’t mean it is,
Lumin added.
Dogecoin Isn’t Implementing PoS
Vitalik Buterin, the founder of Ethereum, has stated that he hopes Dogecoin and Zcash will follow in Ethereum’s footsteps and transition to Proof of Stake (PoS). This sentiment was echoed by the Dogecoin Foundation, which announced that it is collaborating with Buterin on a staking concept for the popular memecoin.
There was speculation that the collaboration between the Dogecoin Foundation and Vitalik Buterin indicated a plan to shift DOGE to a PoS consensus algorithm, but this has been denied by Lumin, who emphasized that fame and influence do not necessarily equate to greater understanding of the inner workings of a cryptocurrency network.
According to a core developer for Dogecoin, the memecoin’s network is more similar to the older technology of Bitcoin rather than the newer Ethereum-like networks. They also stated that it is not feasible or planned for any individual or group to transition Dogecoin to a PoS consensus algorithm.
Before any changes to Dogecoin’s consensus algorithm can be made, the DOGE Foundation must first obtain the consent of the network’s node validators.
Lumin revealed that there is currently a proposal under consideration for the potential adoption of a proof of stake consensus algorithm by the DOGE network but that the approach may deviate from traditional POS implementations.
The Dogecoin Foundation Announces The Creation Of A Development Fund
As of now, DOGE is trading at $0.06961 and has seen a 60% decrease in value compared to the same time period last year.
DOGE experienced a 3% increase in value over the past 24 hours following the announcement by the Dogecoin Foundation that it will be creating a development fund for the Dogecoin Core and has allocated 5 million DOGE to the fund.
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The wallet, which is managed by core developers, including Michi Lunin, contains 4,999,999.90 DOGE tokens with a current value of approximately $342,000. It is a multi-signature wallet.
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