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How Truly Bad Is DOGE's Infinite Inflation And Tokenomics? Let's Look

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by COINS NEWS 245 Views

I know we love to bash Doge here, and I'm with that. I'm not a fan of the coin and don't recommend it to people. HOWEVER, it is important to get every side of an argument, so I hope to take the infinite inflation argument and put it to the test.

Really how bad is Doge's infinite inflation?

Dogecoin is mined at a rate of 10,000 DOGE per minute, which results in 14,400,000 DOGE created per day. Yearly, 5,256,000,000 Coins are added to the supply. Though this looks like a massive number, how does it compare to Doge's current Circulating Supply?

Doge right now rounded up has a circulating supply of 131 Billion DOGE. If we were to add these newly minted coins (making the circulating supply 136,256,000,000), 3.85% DOGE is added to the supply in a years time. Because there will always be 10,000 DOGE added per minute, the % rate of new Doge created will continuously go down. So how about the years that follow?

  • 2021-2022 - 3.85%
  • 2022-2023 - 3.71%
  • 2023-2024 - 3.58%
  • 2024-2025 - 3.45%
  • 2025-2026 - 3.34%
  • 2026-2027 - 3.23%
  • 2027-2028 - 3.13%
  • 2028-2029 - 3.03%

In 8 years, we will see Doge very slowly drop to around 3% inflation, and will continue to lower as long as it uses this system.

DOGE's only use-case argument is as a store of value to be used for transactions. In other words, it wants to compete with fiat currencies to be used in stores (not as an investment). Do you believe with its current inflation rate that this is possible?

Personally, I'm not into Doge and do not believe it to be a strong investment. But maybe we over-hype the infinite inflation argument if its use-case argument is as a transactional crypto. What do you guys think?

submitted by /u/JustDownInTheMines
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