Dogecoin to allow annual inflation of 5 billion coins each year, forever

BitBurgers is one of the few businesses that accepts Dogecoin.

For the last two months, developers and users of Dogecoin, the shiba-themed altcoin (alternative Bitcoin), have been trying to hash out whether it should be an inflationary or deflationary currency. On Saturday, Jackson Palmer, the creator of Dogecoin, wrote on Github that the developer team would keep the code as it is—allowing for some limited inflation.

Most altcoins, as they’ve been designed so far, are deflationary. This means there’s a hard cap on the number of coins that will ever be in existence. Bitcoin, for example, is designed to not have any more bitcoins come into existence after 2040. Other variants (Litecoin) have similar setups. However, one of the downsides of deflation is that it essentially encourages hoarding, as the perceived real value of the currency increases over time. Accordingly, academic researchers showed last year that 64 percent of all bitcoins (PDF) have never been spent.

As Palmer wrote:

Read 10 remaining paragraphs | Comments


via Ars Technica


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