Dogecoin Developers Announce That Altcoin Is Switching to Staking

The Dogecoin Foundation is partnering with Ethereum co-founder Vitalik Buterin to create a unique reward system for altcoin holders and stop mining.

The non-profit organization Dogecoin Foundation, which is developing a “meme” token, has published an updated project roadmap, in which it announced the transition of altcoin to staking (Proof-of-Stake consensus algorithm). The developers also noted that they are working on a staking mechanism together with Ethereum co-founder Vitalik Buterin.

The Dogecoin Foundation noted that they want to create a unique staking system for their community that would allow all altcoin holders, not just large holders, to be rewarded for keeping the network running.

Back in early September, Buterin proposed to transfer Dogecoin to the Proof-of-Stake (PoS) consensus algorithm, whereas now the altcoin works on the Proof-of-Work (PoW) algorithm. The main difference between PoS and PoW is that miners who generate computing power are not needed to maintain the PoS network. The health of the blockchain is ensured by the holders of digital coins and are rewarded for this. This process is called staking.

In mid-August, Buterin joined the updated Dogecoin Foundation advisory board.

On December 24, Dogecoin was trading at $ 0.18. Over the course of the day, altcoin has risen in price by almost 4%, and its capitalization has increased to $ 24.5 billion, according to CoinGecko. Over the month, the “meme” token has fallen in price by 18%. In May of this year, Dogecoin renewed its all-time high above $ 0.73. Since then, its price has dropped by 75%.

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