Dogecoin recently announced working with Vitalik Buterin to bring proof-of-stake to the network. The Ethereum founder confirmed the news, stating that the meme coin will complete the shift for its new community staking system.
Elon Musk, the world’s richest man, owns Dogecoin and tweets about it, which is one of the reasons it has taken off. Musk, too, thought it was a joke, but the value of the coin rose.
The ease with which investors may get the currency is an often-overlooked factor in its appeal. Regardless, if there’s one thing we learned last year, it’s that Dogecoin frequently thrives in the face of adversity. You can get more information about the future of DOGE in the linked article. The three primary reasons behind the PoS shift are adding a new currency (LibDogecoin), launching a new PoS wallet (Gigawalle), and a new form of Dogecoin. The network recently talked about the integration in a post that it’s collaborating with Buterin for creating a unique Doge proposal.
The parties were formulating a community staking version of the PoS mechanism that allows every user to earn yield rewards according to their network contribution and not status. However, the news sparked several doubts and controversies related to the plan’s effectiveness.
The primary reason behind the skepticism is Bitcoin and Ethereum are still following the PoW mechanism. Many users still believe that PoW is the best way to conduct decentralized operations. Even Jack Dorsey, the former Twitter CEO, also believes that the section of the crypto community is insecure compared to the PoW mechanism.
Despite such beliefs, the crypto community is well aware of the energy consumption issues imposed by the PoW mechanism. The mechanism consumes high energy as every miner tries on the network to mine blocks. The property triggered a commotion back in May 2021, after which several networks decided to complete the migration.
Names like Shiba Inu and Dogecoin were among the ones that decided to shift to the PoS mechanism. With the two most popular meme coins competing against each other, the decision to adopt PoS will only increase the competition.