Dogecoin Caps & Tech | From the CEO

Shared with Permission.

I’m keen to try to help find a way to help (People) get more sleep and not need to explain obvious stuff to people.

Perhaps it can help if we reframe things a little and have a simplified and clear explanation that doesn’t provoke counter-questions. I provide an explanation which is a little simplified and geared toward newcomers.

For people who say Dogecoin is “unlimited” or “permanently inflationary”

Answer:

1. ⁠Dogecoin supply inflation is currently 3.9% per year, and it falls every year.

2. ⁠Over time new supply eventually would fall to an arbitrarily low value (0.0000000000001% per year, etc) but can never reach exactly 0%.

3. ⁠There are always coins lost due to abandoned dust and lost keys. At some point (and maybe already) these lost coins will outweigh the new supply. Therefore Dogecoin is a deflationary coin.

For people who say Dogecoin has “No Cap”

Answer: Dogecoin has a cap, and that cap is 10k per block. It is not like fiat which lacks a cap because the supply can be adjusted at any point. Doge’s new supply is fixed eternally at 10k per block. This amounts to 3.9% supply inflation in 2021, and every year it gets lower, but it never gets to literally 0%.

I’m happy for any shibe to copy-paste these answers, and I think they resolve 99% of queries about supply.