Vitalik Buterin Wants to See Dogecoin Adopt PoS
Meme coin Dogecoin might be a “cryptocurrency like bitcoin,” but Vitalik Buterin hopes it will resemble something closer to Ethereum one day. The Ethereum co-founder opened up a Twitter thread Q&A to the accounts he follows on the social medium platform, and the topics of discussion ran the gamut.
One of his followers, Zhu Su of 3ac, wanted to hear Buterin’s thoughts on the popular meme-coin project Dogecoin. Buterin is no stranger to Dogecoin. In fact, he was recently named as an advisor on the recently reestablished Dogecoin Foundation board. So when he was asked about the meme-coin project, it is no surprise that Buterin addressed the one theme that is expected to catapult the blockchain he architected, Ethereum, to another level — the proof-of-stake (PoS) consensus algorithm.
Ethereum is in the process of transitioning from a proof-of-work (PoW) to a PoS model, which will provide greater scalability and lead to lower fees on the network. Dogecoin is a PoW cryptocurrency that uses electricity for mining new coins.
Energy consumption is a sticking point in the cryptocurrency industry, a topic that came to the forefront after Tesla CEO Elon Musk addressed it. For his part, Musk recently revealed that he is working alongside Dogecoin developers to make the crypto more environmentally friendly.
Buterin’s hope is that “Doge can switch to PoS soon,” suggesting that it could even use the Ethereum code.
Personally, I hope that doge can switch to PoS soon, perhaps using ethereum code. I also hope they don’t cancel the 5b/year annual PoW issuance, instead they put it in some kind of DAO that funds global public goods. Would fit well with dogecoin’s non-greedy wholesome ethos.
— vitalik.eth (@VitalikButerin) September 2, 2021
Staking for Rewards
While Ethereum is still moving to PoS, holders of the Ether token are already staking — or pledging their coins for a specified period of time to bolster the security of the network in exchange for interest on their holdings. If Dogecoin were to adopt a similar model, demand for the cryptocurrency could potentially increase even further, sending the price higher in the interim.
Vitalik Buterin would also like to see Dogecoin, which is known for two-word phrases such as ‘Much Wow,’ use its foundation for more good. He pointed to Dogecoin’s annual inflation of 5 billion coins, saying that instead of canceling it in a PoS world, the project should instead redirect the coins to a “DAO that funds global public goods,” pointing to the project’s “non-greedy wholesome ethos.” Now that he is on the board, it seems that Buterin might have some pull to achieve just that.